The Crown Estate has posted record profits of £252.6 million, a 5.2 per cent improvement on last years’ figures. The return on the estate’s £8.1 billion portfolio, which includes prime West End assets in Regent Street and St James’s, was 11.3 per cent. This easily outperforms the industry benchmark of 9.9 per cent and provides a welcome boost to the Treasury.
Regent Street
The Crown Estate dates back to 1760 and today owns a diverse property portfolio. This includes 15 retail parks, office and industrial holdings, agricultural land, Windsor Estate and virtually the entire seabed up to 12 nautical miles from the shore.
Although the Queen legally owns the Crown Estate, ‘in right of The Crown,’ it is not the monarch’s private property and the Queen has no powers of management or control. This is the responsibility of an independent organisation known as the Crown Estate Commissioners or the Board. Neither does the Queen profit directly from the Crown Estate which pays its entire revenue surplus to the treasury.
Welcoming the results Chairman Sir Stuart Hampson said. “We are proud that another record Crown Estate performance will again make a strong contribution to the nation’s finances.”
A breakdown of the figures shows that the Crown Estate’s urban portfolio had another strong year achieving a total return of 10.6 per cent on assets with a value of £5.9 billion.
The rural and coastal portfolio also had a successful year, delivering returns of 13.3 per cent. The Crown Estate has enhanced this portfolio through a number of acquisitions and it continues to support rural and coastal communities.
The value of the energy and infrastructure portfolio rose to £564 million during 2012/13 and delivered a total return of 10.6 per cent. The Crown Estate has continued to invest in the offshore wind industry, adding in the region of 300 new turbines over the course of the year.
Chief Executive Alison Nimmo said; “Today’s results are a ringing endorsement of the quality of our portfolio, our active asset management and our highly skilled team.
“Despite challenging market conditions, we are well placed as a business with a clear vision and investment strategy, great partners and a strong balance sheet.”
The Crown Estate employs around 400 staff based at ten locations throughout the UK. Much of the day to day running of the estate in entrusted to appointed firms of management agents and surveyors.
