Owner of Fosse Park gives treasury £343m
Crown Estate sees its portfolio increase in value during year
THE Crown Estate returned more than a third of a billion pounds to the Treasury last year, according to its latest set of accounts.
The real estate business, created by an Act of Parliament and owned by the Queen, is now responsible for a £14.3 billion real estate portfolio – up 1.7 per cent in value on the previous year.
The annual accounts said it has outperfomed the market for the 11th year in a row, despite the value of its property portfolio outside the capital dropping.
The figures were somewhat overshadowed, though, by reports the Sovereign Grant – funded by profits from the Crown Estate – spent £2.4 million of taxpayers’ money renovating Frogmore Cottage, in Windsor, home of the Duke and Duchess of Sussex.
Assets owned by the Crown Estate include the 15,800-acre Windsor Estate, central London areas including Regent Street, prime retail estate such as Fosse Park in Leicester and Racecourse Retail Park in Aintree, as well as offshore windfarms and the seabed around England, Wales and Northern Ireland.
During the financial year it returned £343.5 million to the Treasury, up 4.3 per cent on the previous year.
It means the total given back to public finances over the past decade equals about £2.8 billion.
The accounts showed overall performance was ahead of the market, with a total return of 4.9 per cent, which was also ahead of an annual benchmark of 3.1 per cent.
That outperformance was driven by the growth of its offshore wind business along with acquisitions and asset management in central London.
Chief executive Dame Alison Nimmo, who steps down from the job later this year, said it came despite challenging market conditions, and they were now gearing up for the future.
She said: “We see profound changes taking place in our markets and in the world around us.
“It’s clear the commercial property sector is changing, and changing at pace.
“As a business that genuinely thinks long-term, we know we must keep evolving so we stay relevant – meeting the changing needs of our customers and of society.
“This year we’ve challenged ourselves to think deeply about the future of our business and our competitive advantage.
“As a result, we are developing a strategy which will put us on the path to transforming the business from its traditional landlord/tenant roots to become one centred on real estate as a service.”
The Crown Estate completed £720.3 million of sales, purchases and capital expenditure during the year.
Work is under way on the £168 million extension to Fosse Park, which will increase its size by 40 per cent and make it the UK’s biggest retail park.
The extension is
2020.
Robin Budenberg, chairman of The Crown Estate, said it was “another year of strong returns to the Treasury and for the nation’s finances”.
He said: “Looking through shortterm volatility in our markets, we remain focused on planning for the future to shape a business that creates value for customers in new ways and seizes the opportunities presented by the macro trends that are transforming how people use real estate.” set to open in