When not marrying off grandkids or waving from balconies the Queen’s recent months have been spent augmenting the commercial property portfolio of The Crown Estate. Although Her Majesty’s direct involvement in the business of surveying and acquisitions is perhaps somewhat limited, the recent activity conducted by the estate looks set to benefit the Crown’s coffers immensely.
Comprising a wide and disparate range of assets across the UK, including Grade I listed buildings, modern office complexes and retail centres, in addition to most of the seabed around the British coast (much of which is rented to renewable energy producers), The Crown Estate’s commercial property portfolio is currently valued at £7bn. Although over half is located in Central London and the West End, the past year has seen The Crown Estate invest £250 million in acquiring key assets beyond the capital, including out-of-town shopping centres and retail parks in cities including Liverpool, Nottingham and Portsmouth. The estate is also prepared to co-own its commercial property with private companies, for example the Westgate Centre in Oxford (50% partnership with FTSE 100 property giant Land Securities), 50% ownership of the Crown Point Shopping Centre in Leeds, and the recent 25% sale of Regent Street to the Norwegian sovereign wealth fund.
In fact, Regent Street has been something of a fulcrum for The Crown Estate over the past decade. The considerable recent investment in the regeneration of Regent Street has resulted in it becoming one of the most attractive, luxurious and sought-after destinations for retailers, consumers and tourists alike. With rents in the region of £40 per sq ft this asset is now worth an incredible £2 billion, so it’s unsurprising that it’s the location chosen for The Crown Estate HQ.
There’s been something of an evolution of philosophy since William the Conqueror’s claim that everything in England belonged to him. The Crown’s strategic acquisition of commercial property and its long-standing historical assets, in addition to an increasing interest in offshore wind, wave and tidal energy developments, resulted in a £230 million addition to the public pocket last year. However, with 15% of estate profits due to go directly to the Queen from 2013 under the Civil List arrangement, the Windsor household will have a pretty penny put aside ahead of young Harry’s future nuptials.
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