Coronavirus: Grosvenor Group ‘very cautious’ on new property deals
Property group Grosvenor today said it was “very cautious” on new commitments due to the “severe” economic shock caused by the coronavirus crisis.
Despite the cautious outlook the company, which is owned by the Duke of Westminster, said it was positive about its planned projects, including a 1,500 home development in Bermondsey and a joint venture in China.
Grosvenor reported revenue profit of £65.9m in 2019, compared to £131m the previous year, and total return of 2.6 per cent, down from 5.5 per cent, in line with expectations.
The group said it had “considerable liquidity to weather the impact of coronavirus and underpin ambitious growth plans”. It added that its commitment to international diversification will continue.
Grosvenor Group chief executive Mark Preston said: ““In the current climate, our 2019 results are very obviously yesterday’s news”.
He added: “It is clear that the economic impact of Coronavirus already constitutes a severe shock in 2020 and we are adopting a very cautious stance on new commitments for the time being.”
Grosvenor Group has offered rent deferrals and rent-free arrangements to independent and vulnerable retail tenants.
It has also waived rent for the 26 charities within its London estate portfolio and offered properties to key workers.
Preston added: “As we continue to review the support we are providing on an ongoing basis, adapting our response as needed to ensure we continue to do all we can to help our communities, we are also ready to advance our ambitious business plans to deliver long term growth and social benefit”.