
Duke of Westminster's Grosvenor Group returns to profit
The Duke of Westminster and his family saw their dividends increase for a tenth consecutive year in 2024 as their vast property empire returned to profitability.
Grosvenor Group, which runs a multibillion-pound portfolio of assets including its 300-acre estate in the West End of London, posted a pre-tax profit of £24 million for the 12 months to the end of December, having sunk to a loss of £175 million in 2023.
'That's a big shift relative to a difficult market environment and a significant movement from last year but I think it's fairly easily explained,' Mark Preston, chief executive of Grosvenor, said. 'Strong rental growth, a very high level of occupancy — 97 per cent; a testament to the quality and the attractiveness of what we're offering, and also that valuations have held up very well.'
In 2023 the value of Grosvenor's buildings was written down by £141 million as higher interest rates dented values which weighed on its profitability. However, the underlying valuation of its portfolio was broadly stable last year as an increase in the value of its offices, shops, flats and hotels in the UK was offset by some lingering weakness in North American valuations. Underlying profits increased by 17 per cent to £86.4 million from £74.1 million.
Grosvenor has been a beneficiary of the 'flight to quality' in the commercial property market since the pandemic, which has pushed up rents for its offices, shops, restaurants and flats, most of which are clustered to the north and west of Buckingham Palace.
Such is the competition for space that it has next to no units sitting empty in London and its West End offices are fetching dearer rents than ever. Its leasing team believes they could have let out 65 Davies Street, which sits above the Bond Street Elizabeth Line station and which was completed at the end of 2023, 'several times over'.
'This polarisation is now such a feature, particularly of the office market,' Preston, 57, said. 'Well-located [buildings] with amenities and that are energy-efficient and close to parks, theatres, restaurants and so on, that's where people want to be and we, very fortunately, have that in abundance on the London estate.'
Grosvenor Group owns 300 acres of land in Mayfair and Belgravia that have been under the control of the Grosvenor family since the late 1600s. It also owns billions of pounds worth of property outside the UK and almost half of its portfolio is now overseas, including student housing in Brazil and warehouses in Poland.
The group is almost entirely owned by trusts, one of the ultimate beneficiaries of which is Hugh Grosvenor, the 7th Duke of Westminster, who inherited the title when his father died in 2016. Dividends of £52.4 million were paid last year, a small increase on the £51.1 million that the family received in 2023. They have seen their annual payouts increase every year since 2014.
Despite the underlying value of its UK buildings having increased in 2024, the absolute value of the portfolio declined by £400 million to £8.2 billion, which reflected Grosvenor's decision to sell its 23 per cent stake in the Liverpool ONE shopping centre as well as a slice of its Mayfair portfolio to Norway's sovereign wealth fund.
Grosvenor will use the money to fund its development pipeline, which stands at £6.6 billion. A big chunk of that is at South Molton Lane, the largest mixed-use development being built in the West End, which comprises offices, retail and hospitality units, leisure space and a new five-star hotel.
In addition to property, Grosvenor Group also has a portfolio of investments in food and agriculture technology businesses, including Gousto, the meal kit delivery company. The value of those investments increased by a fifth to £469.6 million. Some of the growth reflected the additional £48.5 million of investments that Grosvenor made during the year, including into Ostara, which makes eco-friendly fertilisers.
Investing in the US
The commercial property market in the United States is likely to remain challenging 'for a bit yet', but that is not deterring Grosvenor Group from investing heavily across the Atlantic (Tom Howard writes).
Mark Preston, chief executive of Grosvenor, warned a year ago that the commercial property market in the US and Canada was struggling more than in the UK, in part because of landlords' extra indebtedness there, and his view has not changed over the past 12 months.
'It's definitely a bit tougher over there than here,' Preston said. 'The UK does still have a very strong attraction for the international investor, lender, shopper, resident, tourist. It is a reliable and predictable and safe place to be and invest, whereas things are different now in the US. I suspect that [the weak property market] in the US that we talked about last year, and which is certainly still the case this year, will be much the same next year.'
He expects President Trump 's 'liberation day' trade war to harm the world's largest economy by hindering growth and increasing inflation. Worryingly for landlords, whose buildings' values closely track interest rates, Preston believes central banks will respond by keeping rates higher than most people anticipate.
Despite his near-term concerns, he remains convinced by the 'long-term attractiveness' of the US and Canada, where Grosvenor owns £2.6 billion of property. Along with two other Canadian investors, Grosvenor has committed to building several blocks of flats in Vancouver that will deliver 1,730 homes, most of which will be rentals.
'If we were in the business of making short-term bets then we wouldn't be excited about [North America],' Preston said. 'But we're in the business of making long-term decisions and we still find the demographics and the overall growth story in the longer run attractive.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Guardian
18 minutes ago
- The Guardian
MPs ask ministers whether they will recoup Thames Water executive bonuses
The environment secretary has been asked if he will claw back controversial bonus payments to Thames Water senior executives after it emerged some bonuses had already been paid out. Last month, Steve Reed vowed to block bonuses that Thames Water proposed to pay to managers at the beleaguered company. The firm's chair has been forced to admit that bonuses have already been paid to executives out of a £3bn emergency loan paid by creditors for the purpose of rescuing Thames from financial collapse. In a letter to MPs on the environment, food and rural affairs committee, the chair of Thames Water, Sir Adrian Montague, admitted 21 members of the firm's senior management team received a first payment at 50% of base salary on 30 April 2025. He said 'the board does not intend to recover this money'. The letter says that the 21 individuals who received payments did not include Sir Adrian himself, the CEO Chris Weston, or the CFO Steve Buck. However, he added that Buck would be eligible for a later payment under the plan, which he confirmed is 'paused' pending a review. He added that the bonuses are worth £18.5m in total, spread across three payments over two years – '50% of base salary on 30 April 2025; 50% on completion of [Thames Water's] second restructuring plan or, if earlier, December 2025; and a final payment of 200% of base salary in June 2026'. The parliamentary committee has written to Reed asking 'whether you expect Ofwat to recoup the payments made on 30th April to all 21 of Thames management team?' Alistair Carmichael, the chair of the committee, said: 'We have now learned that 21 members of Thames Water's senior management team, not including their CEO and CFO, received payments additional to their salary, in April 2025, at the not inconsiderable rate of 50% of their base rate of pay. Thames Water have stated in a letter to us that they do not intend to recover this money. They also say that the retention payments scheme has been 'paused'. 'As a committee, we are trying to seek clarity as to whether these payments fall within the remit of the government's ban and will be recouped, given that they were not paid to the company's CEO or CFO and are termed by Thames Water as 'retention payments' rather than bonuses. We are also asking whether Defra and Ofwat were aware of these payments and what undertakings they have received from Thames Water about the pausing or withdrawal of the retention plan. 'Given that the plan includes two further retention payments, including 200% of base salary due to be paid to these 21 individuals in June 2026, it is vital that Thames Water, Defra and Ofwat are clear with us all about what exactly is going on.' In his letter, Montague also apologised for misleading the committee after the Guardian revealed he had wrongly told MPs the large bonuses were 'insisted' upon by creditors. He told the select committee that the lenders said that 'very substantial' bonuses of up to 50% of salary should be paid to company executives from the controversial loan in order to retain key staff. The Guardian revealed that sources with knowledge of the details of the agreement, the term sheet for the loan and court documents suggested that while the bonuses were agreed to by the creditors they were not necessarily proposed by them. He said: 'For complete clarity, I did misspeak. However, I certainly did not intend to mislead. I deeply regret having caused confusion through my appearance.' A Thames Water spokesperson said: 'We wrote to the Efra select committee to apologise for the confusion caused following the recent evidence session and to provide further clarity. 'The company's CEO is not party to the MRP [management retention plan] and has received no payments to date. None of the retention payments have been funded by customers. Full details of the plan have been shared with our economic regulator. We will review the requests from the select committee chair and will respond in due course.' Defra has been contacted for comment.


The Sun
21 minutes ago
- The Sun
B&M shoppers rush to buy HUGE furniture scanning for just £1 instead of £80
SHOPPERS are rushing to bag a bargain after discovering an £80 B&M item is scanning for just £1. The stunning piece of furniture is selling for a huge discount with one lucky shopper picking it up from their local B&M. 3 They shared the massive discount to social media with others rushing to stores to snap up one of their own. The two door sideboard is usually priced at £80, B&M have not announced or advertised a discount for the product. Despite this the price of the item appears to have been reduced by a whopping £79 with shoppers racing to stores to snap up the bargain item. Social media users quickly tagged friends and pals in the post to share the massive savings on offer. The sideboard has a rustic oak finish and boasts plenty of storage space. The seemingly secret sale had shoppers clamouring to get to their local store to pick up one of the "lush" sideboards themselves. After sharing their bargain buy online the lucky shopper who spotted the discount was congratulated by others. One social media user said: "Absolute bargain. I've had this for ages and paid £40. It's lush." Another commented: "Good for you, a bargain and then some." Shoppers hoping to get their hands on the discounted furniture will have to be quick and will need to download the B&M scanner. 'Why is no-one talking about this-' woman says about B&M buy that'll transform her bathroom for 'less than a Domino's' The scanner lets you see if an item is cheaper than its advertised price. Discounts are sometimes applied to seasonal items or old stock with B&M trying to shift it quickly. The scanner lets the customer check if items are being sold at lower prices and saves them a bunch of money. Using the scanner is completely free, bargain hunters just need to download the B&M app. If items scanned by the app show lower prices than advertised shoppers need to take them to the cash desk in store where they will automatically scan at the lower price. Brits up and down the country have bagged massive bargains at B&M using the method. Using the app could help you score plenty of bargains on your next shopping trip. Any item could be discounted so it is always worth checking with the scanner before paying full price. The side board is no longer selling on the B&M website, suggesting it has had its price slashed so dramatically as part of a clearance sale getting rid of old stock. Amazon said the piece of furniture, which they are selling for £89.99, offers: "Convenient hidden storage space behind two doors with a rustic wood finish. "With its rectangular shape and metal legs, this storage cabinet can serve well in entryways, hallways, or dining rooms for organizing shoes, books, toys and more. "The standout feature of this cabinet is the chevron detailing on the doors, adding a stylish and contemporary touch to its design." How to bag a bargain SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain… Sign up to loyalty schemes of the brands that you regularly shop with. Big names regularly offer discounts or special lower prices for members, among other perks. Sales are when you can pick up a real steal. Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on. Sign up to mailing lists and you'll also be first to know of special offers. It can be worth following retailers on social media too. When buying online, always do a search for money off codes or vouchers that you can use and are just two sites that round up promotions by retailer. Scanner apps are useful to have on your phone. app has a scanner that you can use to compare prices on branded items when out shopping. Bargain hunters can also use B&M's scanner in the app to find discounts in-store before staff have marked them out. And always check if you can get cashback before paying which in effect means you'll get some of your money back or a discount on the item.


BBC News
24 minutes ago
- BBC News
'It will make a lot of difference': Reactions to winter fuel payment U-turn
More than three-quarters of pensioners will receive the winter fuel payment this year after a major policy decision from Chancellor Rachel Reeves means nine million pensioners in England and Wales with an annual income of £35,000 or less will now be have spoken to us or contacted the BBC through Your Voice, Your BBC News about how the change of plan will affect them. 'Payment was taken away without warning' Bob Pritchard, 78, from Bath, told the BBC he earns £19,500 a year and believes he will now have his allowance reinstated."It will make a lot of difference. I've got various health issues and have to travel to hospital by taxi. I can't really afford to do it. The winter fuel payment was more or less taken away without warning," he said,Despite being happy about the government's U-turn, Bob believes he should be compensated for how he struggled when his winter fuel payment was taken away last year."The least they could do is offer some small compensation for all the grief and heartache that the initial decision to stop winter fuel payments has caused," he said. 'I give my winter fuel payment to charity' Alice George, 71, from Watford says she is "appalled" by Reeves' decision and gives her own winter fuel payment to charity."I know people who put the money towards a holiday," she said."I constantly meet pensioners who live very comfortably. I go to the cinema and the theatre regularly and they are packed with my ilk, most of whom don't need this money."Alice thinks its unfair that some young people earning less than £30,000 are expected to pay what she calls "extortionate rent and travel expenses".She thinks the winter fuel payment money should be put towards the NHS or tackling the housing crisis. 'I'm more than happy not to receive the payment' Ian Bryant, from Nailsworth in Gloucestershire, is pleased with the government's earns more than £35,000 as a pensioner so will not be receiving the payment himself but is happy for the others who will."It wasn't ideal when the payment was removed last year, as it impacted on many of those on the lowest income although I understand why it was done. A more considered approach would have been better," he said."I'm 68 and still have a mortgage. I go away a couple of times a year - nothing five star - have an old car, but manage fine. I'm more than happy not to receive the payment." 'Last year I turned off all the heating' Gail Impey, 71, a finance manager from Buckinghamshire, will miss out on the payment as her income is just over £35, said she struggled last year when her winter fuel payment was taken away."I turned off all the heating and used all my saved up logs in my log burner," she husband died in 2021, which meant she could no longer retire as she said she could not afford to stop working."Luckily at 71 I am fit enough to work but I do not have a good quality of life. It's just me and the dog. Everything is so expensive, I have to make every penny count," she added: "I earn just over the threshold but I'm taxed on that. I have paid in all my life and it seems I am missing out again. This is not fair and being on my own I have to work harder than ever." 'I didn't miss the winter fuel payment' Mike Hodges, 72, says he did not miss the winter fuel payment when he stopped receiving says his income is above the £35,000 threshold but below £40,000."The threshold could be a lot lower so money can be spent on much more pressing priorities."He thinks the money spent on the fuel payments should go to initiatives for younger people instead. Additional reporting by Kris Bramwell and Alex Emery Get our flagship newsletter with all the headlines you need to start the day. Sign up here.