The Crown Estate has seen post-pandemic demand for West End office space pick up although the total value of its huge London portfolio has fallen, it has emerged.
The landlord published its first annual update since King Charles III was crowned and said the estate value in the capital dropped 6.5% to £7.2 billion in the year to March 31. That came amid inflation, rising debt costs and economic uncertainty.
But the company, which manages land that is owned by the Monarch in right of the Crown and has a history that goes back to 1760, said there has been improved activity in London.
It said Regent Street footfall rose 39%, although that is still 10% below pre-Covid. It also agreed a number of office lettings during the period.
Deals included private equity firm Bregal Investments taking space at 20 Air Street.
Developers have been grappling with new office occupier trends as hybrid working is embraced and a number of employers look to downsize space.
But the Crown Estate’s chief executive Dan Labbard pointed to encouraging activity for his firm. He said: “The continued success of our workplace portfolio in London and increased demand for space is driven by a breadth of product, alongside the world-class access and amenity that our neighbourhoods offer workers in the West End and St James’s.”
The value of the Crown Estate’s entire portfolio increased by 1.3% to £15.8 billion, largely driven by gains in the marine division.
It has a diverse group of assets comprising retail and leisure sites across the UK, and rural land. It also manages the UK seabed, helping to develop offshore wind farms.
Net revenue profit, which goes to the Treasury, was £442.6 million, £129.9 million higher than last year.
