Grosvenor takes hit on Liverpool One
THE property group behind Liverpool One and Preston’s proposed Tithebarn development has racked up losses of nearly £600m.
Grosvenor Group said its pre-tax loss of £593.9m, which compares with a profit of £524m last time, was down to declining asset values caused by the economic slump.
The Duke of Westminster’s company said it wrote down Liverpool One by £165.3m, largely because of valuation movements. It follows write-downs worth £189m in recent years at the £1bn shopping development which opened for business last year and is now 90% let.
In its annual report the company said it was braced for further falls in value this year and does not expect a market recovery, “for some time”.
The group’s net asset value was dropped 7.4%, to £2.8bn while the value of total assets under management, including those directly owned and those managed on behalf of other investors, fell by 2.3% from £12.9bn to £12.6bn.
Chief executive Mark Preston said: “This is a challenging time for the property industry and inevitably Grosvenor has been affected.
“But the impact has been cushioned by our well-diversified portfolio, low gearing, and steps taken since 2007 to curb acquisitions and reduce our development exposure. Hence, the impact on net asset value is relatively limited.”
Grosvenor is working on Preston’s £700m city centre Tithebarn development with Lend Lease. A planning application should be considered in June.
