Cadogan Estate shrugs off luxury goods slowdownComments Off on Cadogan Estate shrugs off luxury goods slowdown
A string of overseas retailers aiming to lure Knightsbridge’s well-heeled shoppers helped landlord The Cadogan Estate to shrug off the slowdown in the luxury goods market and reveal record growth today.
The landlord which owns 93 acres of London — mainly around Chelsea and Knightsbridge — saw the value of its assets swell 11.4% to £5.8 billion last year, according to boss Hugh Seaborn.
The Cadogan family’s portfolio, one of the capital’s four “great estates”, was helped by a queue of brands wanting to open new shops. Total rental income rose 8.2% to £129.7 million.
Seaborn told the Standard: “Luxury brands are not immune to the external tough conditions, but on Sloane Street the market has stayed strong and we continue to have very healthy interest in our shops. We have not seen a slowdown in tourist or domestic shopper numbers.”
Red Valentino, which sells £670 backpacks, and Italian boutique Delpozo, are among labels that have agreed to open in Sloane Street this year.
The upbeat retail update is in contrast to the woes hitting the wider luxury sector. Global brands have suffered from a crackdown on extravagant gift giving in Hong Kong, and slowing tourism in Europe on terror fears.
The Cadogan Estate posted a strong performance in its office division but said that residential values were flat, hit by stamp duty changes and pre-EU referendum jitters. The weaker homes performance contributed to a 3.1% pre-tax profit fall.
However, Seaborn believes residential sales will pick up in the medium term, regardless of the result of the vote this week.
“There has been a pause of spending but I believe in the medium term this will pick up because there is ultimately a shortage of housing in London and that will not change for some considerable time,” he said.
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