Making a mint: Property investment lessons from the Crown Estate
What can property investors learn from the Crown Estate’s remarkable success, asks Nicky Richmond…
The Crown Estate recently won another crown – that of Property Company of the Year 2012.
With profits at 5.2% to £252.6 million and a total return of 11.3%, against an industry benchmark of 9.9%, you can begin to see why.
Whilst most people might imagine that the Crown only owns prime parts of central London, their holdings are far more diverse than those bits of Regent Street and St James we all know about. Did you know that included in their “Urban” portfolio, were fifteen retail parks, a leisure scheme and three shopping centres?
And their “Energy and Infrastructure” portfolio, issues licences and leases for renewable energy generation, wave and tidal mineral aggregates and cables and pipelines. That’s easy for them, given that they own almost the entire seabed, to the twelve nautical mile territorial limit around the UK.
And then there’s the “Rural and Coastal” portfolio, which manages almost 140,000 hectares and holds agricultural land and forests together with minerals, aquaculture and residential and commercial property in England Scotland and Wales. Oh, and they have an interest in many harbours and ports as well.