June 26 (Bloomberg) -- The Crown Estate, the property company that generates income for Queen Elizabeth II, reported record annual earnings as the value of its real estate reached 9.4 billion pounds ($16 billion) for the first time.
Net income increased 5.7 percent to 267.1 million pounds for the year through March 31, the London-based company said in a statement today. The value of the Crown Estate’s total assets rose 14.6 percent to 9.9 billion pounds.
“This record performance shows that from the heartlands of our real estate business to our investment offshore, we’re truly at our best when we’re actively managing,” Chief Executive Officer Alison Nimmo said in the statement.
U.K. commercial property values have been climbing as an improving economy boosts demand for stores and office space. The Crown Estate said every shop it owns in London’s West End district, including the majority of Regent Street, is currently occupied and recent lease signings include brands such as J. Crew and Osprey.
It sold a 25 percent stake in its 320 million-pound St. James’s Market project, including 50,000 square feet of planned stores and restaurants, to Toronto-based Oxford Properties Group Inc. during the year.
In addition to the Regent Street shops, the Crown Estate owns shopping centers, golf courses, Ascot racecourse, parks, farms and almost all of the U.K.’s seabed, according to documents posted on its website.
The Crown Estate oversees real estate surrendered in 1760 by the monarchy in exchange for annual payments. The U.K. Treasury collects its earnings and provides the queen with a percentage.
To contact the reporter on this story: Neil Callanan in London at firstname.lastname@example.org
To contact the editors responsible for this story: Andrew Blackman at email@example.com Jeffrey St.Onge, Daniel Taub