Cadogan Estates reports total return of 17.7% for 2015
Cadogan Estates, the property management company that has a number of properties in London's upmarket Chelsea area, posted a total return of 17.7% in 2015, up from 16.9% in 2014.
Rental income increased 8.2% to £129.7m and Cadogan's operating profit before capital items was £82.8m, a record level for the estate. It said both retail and office values continued to grow strongly.
Cadogan said that the completion of the redevelopment of George House, 127 – 135 Sloane Street, was a major success in the period. It was finished in February and is now mostly rented out, with Red Valentino, Boutique 1 and Delpozo renting luxury flagship stores in the building.
Gross rents in the retail sector have increased by 6.5% during 2015 to £71.3m. In relation to the retail sector, CEO Hugh Seaborn commented: “There is no doubt that retail is undergoing radical change, with digital forces transforming the way consumers shop, however our experience is that demand remains healthy for retail space, with luxury brands seeking larger shops, which they transform creatively, to deliver an exceptional experience that cannot be replicated online. This has manifested itself most particularly at the north end of Sloane Street where we have secured strong rental growth - with the likes of Hermes who are relocating to 1 Cadogan Place - through to Boutique 1’s flagship concept store at the south end of Sloane Street which will have its own café with outdoor seating.”
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