The Crown Estate delivers 8.1% annual return

The Crown Estate has delivered a substantial yearly return of 8.1% in a busy year that saw it complete sales, acquisitions and capital expenditure totalling £1.2 billion.

The value of the Crown Estate’s property holdings has also continued to rise, by 5.5% to £12.4 billion. The yearly returns at end of the financial year in March were well ahead, with a benchmark of 4.4%. Due to a strong and consistent performance, the Crown Estate is on course to notch up a record income return to HM Treasury of £328.8m, up 8.1% on the previous year.

Fraser Williams, one of London’s most influential Chartered Surveyors and Director at Morgan Pryce, says; “This is a great end to a fiscal year, despite Brexit and current political affairs, the Crown Estate has performed unlike other trophy assets”.

The institute has clarified that the key drivers for a momentous year included the lettings of the central London portfolio, totalling £34.4m a year, 8.6% ahead of estimated rateable values and sales of £507m, and 8.7% above paper value.

The Crown Estate’s Chief Executive, Alison Nimmo, explains that the business used the ‘fully-priced’ markets as a major net advantage and selling point. In 2016, it sold £633.2 million of stock and made purchases totalling £72.9 million.

In addition to their profit sales of £507 million, the Crown Estate made £353 million worth of acquisitions focused on central London, including the purchase of 117 Jermyn Street for £67 million.

Williams says; “The fiscal year was a success; but now the Crown Estate – as well as other institutions, such as Morgan Pryce – must take the necessary measures for a tough financial year ahead, because the market is changing”.

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.