Cadogan has trumpeted some “healthy growth” in its corner of PCL, after the value of its property portfolio jumped by £263mn (5.4%) to hit to £5.1bn.
The Great Estate, which owns 93 acres around Sloane Square and the Kings Road, said it had “finally emerged from the long shadow of the pandemic” in 2022, confirming total income rose by 10.4% to £186.5mn.
Operating profit (£98.4mn) took a -2.4% hit, however, as a result of some pricey placemaking and development projects.
On the resi front (the second largest sector in the portfolio after retail), the business delivered its highest ever residential income as the rental market continued to surge. The annual report flagged strong demand for short-let flats and houses, coupled with “limited availability of quality units”. Gross resi rental income rose by 8.2% to £39.5mn.
Highlights from the year’s endeavours included the start of a £46mn public realm and urban greening project on Sloane Street, in partnership with RBKC, and completion of its transformation of Pavilion Road, including full pedestrianisation of the “village high street” – now lined with artisan food shops.
Meanwhile, 1 Sloane Gardens has been restored and converted from an Edwardian apartment block into a boutique hotel and restaurant, to be operated later this year by the celebrated Parisian hotelier and restaurateur Jean-Louis Costes.
A 100k sq ft site at 196/222 King’s Road is also being reworked as a mix of community and flagship retail, affordable and market- let homes, and an independent cinema operated by Curzon.
Plants for the future are based around the “Chelsea 2030” sustainability strategy, incorporating an estate-wide £90mn decarbonisation programme to improve energy efficiency, and a targeted 12.3% increase in Urban Greening Factor, including further pocket forests, natural ponds and beehives to foster biodiversity. A partnership with Gentian will also use satellite data to map opportunities for living roofs across Chelsea.
Hugh Seaborn, Chief Executive, Cadogan: “If 2021 was a year of recovery then 2022 was one where we finally emerged from the long shadow of the pandemic and benefited from our carefully targeted support and investment to deliver a robust performance.
“This performance was driven by many factors, among them our commitment to continue investing in the future of the area through major development projects and significant support for the community during challenging times, along with initiatives to help us meet our ambitious environmental targets.
“As a long-term family business, stewardship – the responsible management of resources for the benefit of current and future generations – has been at the heart of everything we do. We are able to anticipate and respond swiftly to the changing needs of customers and markets.
“As London reopens and welcomes back international visitors, we are seeing strong recovery and healthy demand across the Estate. Moving into the year ahead we remain confident in our strategy and the strength of our diverse and high-quality portfolio.”