Cadogan family see their London property portfolio rise to record £5.2bn

The estate, which spans 93 acres in London, delivered a total return of 17.2 per cent

The aristocratic family behind much of Chelsea and Knightsbridge in London has seen the value of its property portfolio rocket by 13.5 per cent to a record £5.2bn.

The figure, for 2014, marks a fifth year of growth for the Cadogan Estate, which has been owned by the Cadogan family, headed by Lord Cadogan, for more than 300 years.

The chief executive, Hugh Seaborn, said: “The success of Cadogan is allied to the strength of the London property market, which performed strongly last year both from an investment and occupational perspective.”

He highlighted a flurry of high-end retailers such as Club Monaco and Michael Kors moving to buildings on the estate last year, helping to boost rental income by 6.5 per cent to £119.9m.

The estate, which spans 93 acres in London, delivered a total return of 17.2 per cent, contributing to an annualised performance over the last five years of 15.9 per cent.

“Luxury brands can really thrive here and London has established itself as fashion and cultural hub. I think we are in a very healthy position,” said Mr Seaborn.

It also invested around £130m in new assets last year, including a number of residential properties.

The Cadogan Estate is one of a handful of “great estates” owning large swathes of land in London. As well as shops and homes, it owns offices and restaurant properties. Viscount Chelsea, who succeeded his father Lord Cadogan as group chairman three years ago, said: “The economic background to our business has been positive throughout the year.”

Pre-tax profits dipped to £55.4m from £73.9m, but this was largely due to one-off gains in 2013.

London’s Great Estates: Other family firms

Howard De Walden Estate

Freehold owner of most of the buildings in Marylebone, central London. It is 100 per cent owned by the Howard de Walden family, whose links to the area date back to 1710. Its portfolio value hit a record £3.2bn in the year to March 2014, while pre-tax profits grew 6.4 per cent to £48.1m.

Grosvenor Estates

Headed by the Duke of Westminster, it has a number of UK interests but is best known for its 300 acres in Mayfair and Belgravia in the capital. It posted record pre-tax profits of £681.8m in 2014.

The Portman Estate

Powered by 110 acres of mixed-use property in central London. It is a private company so no profits are divulged. The Portman family purchased an interest in the London estate in 1532.