Grosvenor bounces back

Grosvenor says it has ambitious plans for the next 10 years after laying the foundations for growth, in 2010. Mark Preston, chief executive, said at the company’s full-year results that it remained committed to expansion in Asia, especially China, and to reinvesting in its core business in London. “Expanding our fund management business, now under new leadership, is also a priority,” he said.

The Duke of Westminster’s property company reported full-year pre-tax profits of £394.8m, compared with a loss last time of £235.8m. It stepped up reinvestment during 2010 after four years of declining development exposure, using the financial capacity built up over the past two years.

Grosvenor’s managed development pipeline of opportunities at the year end was about £2.5bn, of which £1.1bn was committed. The company said its fund management business saw new opportunities for funds in each of its geographical markets. Preston said after two years of “mildly negative returns”, 2010 saw them move in line with the historic long term average.