Developer plans development push, but pulls back from London high-end residential market
Grosvenor Group has almost doubled its development pipeline to £6bn, the developer said in its annual results announcement this morning.
The lion’s share of the firm’s £6bn development pipeline – around 86% - is in the UK, although the firm also has schemes in Ireland, the Americas and in Asia Pacific. The pipeline has nearly doubled from the £3.4bn it reported in the year to 31 December 2012.
Reporting its results for the yea to 31 December 2013, the firm also announced it has reduced its exposure to the high-end residential market in London due to concerns the market is overheated.
Mark Preston, Grosvenor chief executive, said: “We have been concerned about the level of property values in some markets, particularly in prime central London residential property”.
He added the firm has “accordingly reduced its exposure to high-end residential development by some £240m and is exploring mid-market, where there is unsatisfied demand for good quality rental housing”.
Grosvenor’s pre-tax profit over the year rose to £507m, up from £368m the previous year.