Top Chelsea landlord reports strong year as King’s Road, Sloane Street boom

The Cadogan estate that controls large swathes of London’s Chelsea has reported its 2024 results with a strong year for the business.

It saw a double-digit increase in total income, “underpinned by robust commercial demand, healthy footfall (+4%) and consumer spend (+3%) across the estate, outperforming central London”.

It also made a “significant investment” in the public realm “to nurture community and ensure [the] enduring appeal of physical retail”. This included the completion of the Sloane Street transformation into a “green boulevard”, reinforcing its status as one of the world’s leading luxury shopping destinations “while delivering improvements to biodiversity and climate resilience”.

The estate saw 40 new retail lettings and renewals during the year, including a new ‘creative quarter’ on the King’s Road.

Overall it saw a 16.6% increase in operating profit and total income grew 11.8% to £241.4 million while the property portfolio value increased 1.3% to £5.7 billion. Some £211 million was invested in purchases and developments “to protect and enhance the estate’s long-term position as one of the world’s leading locations to live, work, and visit”.

Retail vacancy levels averaged only 2.9% down from 3.2% a year earlier and the aforementioned 40 new retail lettings and renewals saw annual rents achieving an average of 8.3% above estimated rental value (ERV).

Its success in securing first-to-London brands was illustrated by Trinny London’s first flagship beauty boutique, Farm Rio’s first standalone store in Europe, and Elad Yifrach’s first London boutique L’Objet. H&M also opened a concept store on the King’s Road.

Robust demand from target brands on Sloane Street included growing label Zimmerman and boho fashion brand Temperley London. Brunello Cucinelli upsized, tripling the size of its boutique and Saint Laurent opened an enlarged Maison.

Retail remains Cadogan’s largest sector at 46.2% of the portfolio by capital value and 45.3% of income. Retail gross rental income increased by 3.1% to £99 million a year. The increase in capital value was mainly the result of ERV growth primarily across the King’s Road and Duke of York Square with both new lettings and renewals. 

The strong performance has continued this year too with Birkenstock, Arket, Vuori, and K-Way among the names opening or planning to on the King’s Road.
 
CEO Hugh Seaborn said: “Our strong performance is founded on the momentum built over many years through strategic leasing activity, development schemes, public realm projects and consistently balancing short-term profit against long-term neighbourhood prosperity.

“Our priority remains building the resilience and appeal of Chelsea as a destination… With added threats from tariffs, cooling of the global luxury market and the continued loss of tax-free shopping in the UK, projects such as the Sloane Street transformation are vital to create standout appeal and encourage consumer dwell time and increased spend. It has already seen a significant impact on footfall since its completion earlier this year and clearly demonstrates the growing importance of physical retail for luxury brands as part of a beautifully curated, compelling environment.

“We have invested almost £500 million into developments, purchases and public realm over the last two years. As the impact of online shopping has matured, successful retailers recognise that the physical consumer experience is paramount — we are aware that our role is progressively that of ‘stage manager’, curating an enticing environment that allows business and community to thrive.”