Grosvenor Group, which operates 300 acres of prime property in the West End of London on behalf of The Duke of Westminster, returned to pre-tax profit in 2024. The multi-billion pound estate earned £24 million for the 12 months to the end of December, having suffered a £175 million loss in 2023, as the business continued to suffer from the effects of the pandemic.
Revenue profit, which includes the results from its property trading activities, was £82.1 million – almost double the previous year (£41.5m).
Chief executive Mark Preston called the result “a big shift relative to a difficult market environment and a significant movement from last year,” he told The Times, as he cited “strong rental growth, a very high level of occupancy (97%, against 95% a year ago)”, which was “testament to the quality and the attractiveness of what we’re offering. Valuations have also held up very well.”
He added: “Against a challenging year for the global economy, marked by mediocre growth and rising geopolitical tensions, our business has delivered a strong set of financial results.”
In 2023, the value of Grosvenor’s buildings was written down by £141 million as higher interest rates dented values and weighed on its profitability. But now underlying profits have increased 17% to £86.4 million, benefitting from the area’s “flight to quality” in the commercial property market since the pandemic, which has pushed up rents.
Grosvenor owns vast tracts of Mayfair and other key shopping districts. It noted that the area that sits above the Bond Street Elizabeth Line station, which was completed at the end of 2023, could have been rented out “several times over”.
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% stake in the Liverpool One shopping centre as well as a slice of its Mayfair portfolio to Norway’s sovereign wealth fund.
It’s now using “a big chunk” of its £6.6 billion development funding to remodel South Molton Street, an area with a heritage of niche high fashion that had shown signs of under-development in the 2020s. It will be 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, Grosvenor said.
It also announced senior leadership changes with the appointment of James Raynor to the role of Grosvenor Property CEO. He takes on responsibility for the organisation’s international property business, with his post effective from September. He will retain his current role of CEO of Grosvenor’s UK property business until a successor is appointed.
Debbie Lee is also appointed Grosvenor’s CFO, succeeding Rob Davis from July 2026.
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