Marylebone landlords’ results show ‘year of consolidation’ | kbnmart

A strategy of consolidation and investment in a high interest rate environment continues to come at a high price for London commercial property owner and manager Howard D. Walden Estates.

Its property empire, which includes the prime shopping areas of Marylebone and the fashion-focused Marylebone Village, saw pre-tax losses more than double to £254.2m in its last financial year to March 31.

This figure includes a £331.8m loss on the revaluation of investment properties, while values ​​alone fell by 8.2% on a like-for-like basis over the period. Net debt also rose to £604m from £552.3m in the year.

But there were positives with rental income up 3% to £152.2m while new leases worth £35.4m and 746 new tenancies were also signed, up 4.2%.

Marylebone has proven to be a popular, up-and-coming neighbourhood and has benefited from strong interest from the fashion sector.

Retail, leisure and hospitality income grew by 7%, “driven by new rentals, supported by strong demand from a variety of businesses. Occupancy levels here also remained high throughout the year with a vacancy rate of just 3% at the end of the year.

Sir William Broby, Chairman of Howard de Walden, said: “We have been through a testing period over the past four years. However, there are signs that we may have reached or are approaching the bottom of the current property cycle. Our strong financial position means we can expect good opportunities for property to flourish.”

Chief Executive Mark Kildea added: “We have invested this year in areas where we see significant opportunities to grow net rental income and strengthen our position for the future. We have made excellent progress in achieving our strategic objectives, including the successful delivery of a number of high-quality developments across all sectors. We are confident that we are well positioned… with strong financial capacity, high occupancy levels and a dedicated and motivated workforce in a unique and desirable part of London.”