Duchy’s net assets worth over £400m

THE Duchy of Lancaster’s net asset value increased by almost 6% in the year to March 31, 2012, to £405.3m.

The estate, which is largely agricultural land and farm buildings owned by the Queen, also generated a net surplus of £12.9m, although this figure was a 3% drop on last year.

The Duchy was founded in the 13th century and is held for the Sovereign of the day in his or her role as Duke of Lancaster. It owns 44,694 acres of land across England and Wales centred around five separate units known as Surveys.

These include the Lancashire, Yorkshire, Crewe and South and Needwood surveys, as well as an urban survey in central London on the site of the old Savoy Palace. The proceeds from the estate are a separate source of income for the Royal Family that is separate from the state.

Paul Clarke, CEO and Clerk of the Duchy Council, said that despite difficult economic conditions, the portfolio had performed well.

He said: “Net surplus fell by just over 3% but this was in light of a very significant fall in rental income in the year, arising from the decision to refurbish the office space within Wellington House on the Savoy Estate.

“However, there has been encouraging and consistent income growth from the other asset classes within the Duchy.

“Capital has performed well, with an increase in Net Asset Value of 5.8% to £405.3m which is the first time that the Duchy has passed through the £400m barrier.

“The continued recovery from 2009 has been shared across all parts of the portfolio but again with particularly strong contributions from both the agricultural and commercial portfolios.”

The Duchy also supports two charitable organisations, the Benevolent Fund and the Jubilee Trust.

There is also a Duke of Lancaster Housing Trust whose first affordable housing project at Dunsop Bridge in Lancashire is nearing completion. It contains 12 new houses.

Mr Clarke added: “As anticipated, 2012 has not been an easy year for occupiers or the Duchy but notwithstanding this, the results for the year have shown the resilience of the Duchy portfolio in adverse financial markets and the benefits to be gained from the continued drive to improve the quality of the assets within the portfolio.”