The group has reported steep losses and expects an even weaker 2017
Grosvenor Group has reported a steep fall in pre-tax profit on the back of the UK’s vote to leave the EU and the government’s tinkering with stamp duty.
The developer said pre-tax profit for the 2016 calendar year had fallen by 74% to £137m, down from £527m the previous year.
However, the firm said the results were higher than expected and helped by strong performances from the company’s American and Asian operations and its other investments.
Mark Preston (pictured), chief executive of Grosvenor Group, said: “Investor and occupier unease before and after the UK’s EU referendum, and the imposition of higher stamp duty on purchases, greatly contributed to a slowdown in the London residential market which we anticipated and planned for.
“Looking ahead, we expect our returns in 2017 to be significantly weaker due to limited room for market value appreciation and a reduction in revenue profit following some well-timed disposals.”
The firm, which has a £6bn development pipeline, said it planned to submit four out of six for planning approval later this year, including plans for a residential-led scheme in Bermondsey, south London.
Grosvenor Group added that its joint venture with Oxford City council to create a 26 hectare suburb and its 24 hectare Trumpington Mews neighbourhood in Cambridge consisting of 1,200 homes remained on track.