Last updated 1st July 2022
Grosvenor Group
Grosvenor Group is an international property development, investment and fund management business controlled by the family of the Duke of Westminster. It operates as a specialist developer, investor and fund manager across the residential, retail, office and industrial property sectors, working in Britain and Ireland, the Americas and Asia Pacific and through indirect investments. In all, the group operates from 10 countries and is active in 43 cities.
The core of the group’s portfolio is the 300 acres of land it owns in Mayfair and Belgravia which the Grosvenor family acquired in 1677 and was developed in the early 18th and 19th centuries. Today, it is actively managed and Grosvenor Property has assets worth £8.9 billion and has total assets under management of £11 billion. The group’s UK properties account for around 57% of its property assets. The group also has separate businesses in Food & Ag Tech, with assets under management of £629 million and Rural Estates, with almost 750 residential and commercial properties and 35 farms.
Grosvenor is a significant client for the construction industry and the group currently has a development programme (including assets under management) worth some £868 million and a total development pipeline worth £3.1 billion.
In all, Grosvenor has a £1.4bn UK property development pipeline – much of it in central London – and in 2022 it is on track to complete over 105,000 sq ft of space including its first net zero scheme at Holbein Gardens. It has also retrofitted some 200,000 sq ft of space during 2021 and launched a new regional office portfolio with an increased position on the flagship retail scheme, Liverpool ONE.
Grosvenor is also involved in a major scheme to develop some 1,500 homes in Bermondsey in South East London and it is the master developer for a new neighbourhood at Barton Park in Oxford.
The group”s £11 billion property assets are divided between: office 33.7%; retail 31.7%, residential 23.6%logistics/industrial 5.6% and the remainder in other sectors such as student accommodation.
Grosvenor”s residential portfolio on its London estate includes over 4,000 properties ranging from studio flats to luxury town houses. Meanwhile, based on its experience managing its estate in central London, the group has a specialisation in mixed-use schemes in urban settings.
Today, the group’s strategy involves an expanded focus at its UK and North American property businesses on places that are dynamic, diverse and well connected, to diversify its rental income and its mix of sectors.
In the group’s annual review published in April 2022, Grosvenor chief executive Mark Preson said: “While we don’t expect the world to revert to pre-pandemic ways entirely, we remain convinced of the long-term attractiveness of cities, which enhance relationships, drive innovation and create a range of opportunities.
Financials
To view the financials for Grosvenor Group visit Companies House and use Company ID 03219943.
Grosvenor”s latest results point to a much-improved financial performance during a mixed time for the London property market. In 2021, the group’s urban property business reported a pre-tax profit of £437.5 million compared to a loss of £322.8 million previously on its net assets of £8.9 billion. Overall, the group’s urban property business – including its Americas, Asia, Europe and diversified property interests – reported a revenue profit in 2021 of £99.7 million, up from £39.7 million previously. The group’s UK property business reported a revenue profit of £36 million in 2021, up from £33.4 million previously and produced a total return of 3.4% on its £5.5 billion assets under management. A separate ”diversified property investments” business produced a revenue profit of £50.5 million on equity of £495 million. Meanwhile, the group’s financial capacity increased to £2.1 billion from £1.9 bn.
Developments
In autumn 2021, TfL handed over 65 Davies Street, W1 to Grosvenor for construction to start on a major office development above a new Crossrail station which is set for completion in September 2023. It forms part of Grosvenor’s £1.6 billion development pipeline projects across Mayfair involving 1.7 million sq ft of space and includes the now-approved South Molton Triangle, 2 acre mixed-use redevelopment next to the new Bond Street station. Multiplex is the contractor on the scheme.
In spring 2022, Grosvenor and Gravity unveiled plans for a new £10 million leisure facility at its Liverpool One regional venue which involves a 100,000 sq ft ‘active entertainment experience’ on the two upper floors of a former Debenhams and featuring themes such as e-karting, bowling and urban golf.
Meanwhile, Grosvenor has recently acquired two prime city centre office buildings in Bristol – 1, Victoria Street and Prudential Buildings – adding 107,000 sq ft of space to its c.£170 million regional office portfolio. The group plans to work with occupiers and invest in the buildings to move to net zero carbon and improve services and amenities.
Meanwhile, in early 2022, Grosvenor opened its first fully-serviced office at 25 Eccleston Place, close to Victoria station in SW1, a 30,000 sq ft building for entrepreneurs.
Grosvenor has appointed Redrow Homes on a new neighbourhood, Barton Park, on the outskirts of Oxford in a jv with the council to create “a 21st century garden suburb” with almost 900 new homes, 40 per cent of which will be for social rent. The group is also involved in a major housing scheme in Cambridge with Barratt at Trumpington Meadows which will eventually deliver 1200 new homes.
Glenigan data
Glenigan data reflects a healthy mix of projects in the group”s development pipeline. They show that Grosvenor Britain & Ireland is the client on a £8.35 million public garden revamp at Grosvenor Square Gardens involving 25,000 sq m of green space in Mayfair where Tonkin Architects is the designer and work is set to start in late 2022 and continue for 24 months (Project ID: 17402666). Glenigan data shows that outline plans have been submitted for Grosvenor Developments’ £165 million Salt Cross Garden Village in Oxfordshire involving 2 200 homes, schools and a science business park where work is set to start in late 2022 (Project ID: 17014777).
Conclusion: A significant client on the development scene in the capital and the regions
With a history stretching back over three hundred years, Grosvenor is set to remain a significant client on the capital’s development scene. The group has a portfolio of prime properties which it would be hard to replicate and which it is energetically managing. Today, having sold some of its properties in the capital into rising markets, the group has diversified into areas such as private rental housing and – notably at the Biscuit Factory scheme in Bermondsey – more socially-orientated schemes. Its food and ag tech and rural estates businesses also offer strong potential. Meanwhile, the group”s significant housing schemes around Oxford and Cambridge have reinforced its regional spread and should bolster its resilience in uncertain times.
Winning work with Grosvenor
Grosvenor puts a strong emphasis on the good stewardship of its London estate in Mayfair and Belgravia. Net zero is a priority and the group runs a programme to help suppliers achieve gold standard climate pledge for firms such as architects, building surveyors and contractors, security, recruitment construction and maintenance firms. From 2023, Grosvenor expects to only award contracts over £1 million to suppliers with a Science Based Target to carbon reduction.
Contacts:
Anna Bond, Executive Director of Developments,
Tel: 0207 408 0988
Mark Curry, Project Director
Tel: 0207 408 0988
Email mark.curry@grosvenor.com