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Crown Estate Eyes $217M in Office Dispositions

LONDON-The value of the Crown Estate has broken the euro 7.25-billion ($8.8-billion) barrier for the first time. The private property company is also continuing to realign its property portfolio and is looking to sell euro 264.95 million ($217.6 million) of offices.

By Anita Howarth | Updated on July 13, 2005

LONDON-Crown Estate, which owns and manages property once belonging to the monarch, has seen its value in property, cash and gilts increase to euro 7.38 billion ($8.99 billion) since last year. The total value of the property portfolio was up 9.1% to euro 6.97 billion ($8.5 billion).

Understandably, chief executive Roger Bright says he was “quietly pleased” with the results, attributing the strong performance across all areas to the portfolio’s “diversity, scale and quality.” Rental income also saw a hike, up 2.5%, to euro 346.26 million ($421.6 million) driven principally by new retail lettings in London’s Regent Street, which is now valued at more than euro 1.45 billion ($1.77 billion).

Bright reports that a major shake-up of the portfolio to reduce its exposure to urban offices in favor of other sectors, in particular out-of-town retailing, would continue apace. Knight Frank has been instructed to sell around euro 264.95 million ($217.6 million) of offices, while CBRE is advising on retail opportunities. Offices currently represent 40% of the portfolio by value.

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