Property pick-up boosts Grosvenor

PROPERTY group Grosvenor, owner of the Edinburgh Technopole science park and Fife Leisure Park near Dunfermline, cut its losses in 2009 as battered markets began a cautious recovery.

The privately owned group, which invests across Europe, North America, Australia and Asia, posted a pre-tax loss of 235.8 million for the calendar year, down from a loss of 593.9m in 2008. Total return amounted to minus 2.8 per cent, versus a drop of 4.1 per cent the previous year.

"Revenue profit", which does not include gains and losses from property revaluations, came in at 62.2m in 2009. This compared to the previous year's loss of 76.7m.

Across Grosvenor's five global investment regions, only Asia- Pacific and Britain-Ireland posted positive total returns. Led by a strong performance from Chinese assets, Asia-Pacific recorded a 12.8 per cent total return, compared with a negative 12.1 per cent previously. UK assets clocked up a slightly less robust rebound, but still managed a positive return of 1.8 per cent against a negative 14.6 per cent in 2008.

The group, whose other Scottish investments and joint ventures include the Fountainbridge-Springside development in Edinburgh and the Eastgate Shopping Centre in Inverness, said revenue profit from Britain and Ireland amounted to 13.3m last year, against a loss of 93.3m previously. Occupancy levels across the portfolio averaged 93.5 per cent at the year-end, reflecting Grosvenor's exposure to upmarket residential properties in London and its focus on luxury retail.

Mark Preston, chief executive, said the group's balance sheet had strengthened in 2009, allowing it to re-invest in selected markets.

"Strategic priorities for the future are to invest more in Asia, reinvest in our core London holdings, and work with the growing pool of international capital seeking a home in property via our fund management business," Preston said.