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Cadogan family gets divi boost as its London property empire hits £6.2bn

The Cadogan Estate owns large swathes of Chelsea and Knightsbridge
The Cadogan Estate owns large swathes of Chelsea and Knightsbridge

Demand by luxury fashion brands to have stores in Chelsea has helped one of London’s richest landlords, the Earl of Cadogan’s family, to add more than £20 million to their fortune, the Evening Standard can reveal.

The property aristocrat behind the Cadogan Estate paid himself and his family a dividend of £20.7 million in 2017, up from £19 million a year earlier.

The clan, which has owned the estate for over 300 years, is worth £6.7 billion according to the Sunday Times Rich List.

The bumper payout follows a strong year for Cadogan, which owns large swathes of Chelsea and Knightsbridge, as the value of its property portfolio increased 1.8% to a record £6.2 billion.

Chief executive Hugh Seaborn told the Standard growth was fuelled by upmarket fashion labels expanding or opening new shops, such as bag maker Hermès on Sloane Street.

Seaborn said: “High end retail is far from dead. It’s thriving. Designers know they can get strong footfall in an area where we are continually investing to make it exciting and look great for residents and visitors alike.”

The boss also praised growth in the firm's office arm, helping to offset a weaker performance in its residential business which has seen demand dented by Brexit jitters and stamp duty changes.

Total group rental income rose 7.5% to £160.9 million. Pre-tax profits fell to £172 million from £206.3 million because of much smaller rises in property values than in previous years.

Cadogan is investing £450 million in its estate, including building two new luxury hotels.