Cadogan Family Sees Record Earnings from London Real Estate

The affluent Cadogan family has achieved a record profit from their London real estate holdings for the second consecutive year in 2024, as high-end retailers continue to pay premium prices for retail space on King’s Road.

Last year, the income generated by Cadogan Estates surged nearly 12 percent to £241.4 million, compared to £216 million in 2023. Simultaneously, operating profits saw a significant rise of 16.6 percent, climbing to £140.2 million from the previous £120.3 million, setting a new benchmark for the company.

Rent prices increased broadly for the estate, which encompasses 93 acres in and around Chelsea, west London. The retail units are particularly lucrative, making up almost half of its total £5.7 billion portfolio.

In 2023, Cadogan signed 40 new retail leases, achieving rents that averaged 8 percent higher than initial valuations predicted. Hugh Seaborn, the chief executive, noted that Cadogan continues to attract upmarket retailers who desire fewer locations on the most prestigious streets.

“Luxury retailers are recognizing the significance of having physical stores in prime locations, which has become increasingly evident post-pandemic,” Seaborn, aged 63, stated. “We are witnessing considerable demand, especially on King’s Road, which is driven by increased foot traffic and trading growth. Retailers are optimistic about their profitability here.”

Foot traffic throughout the estate has consistently surpassed pre-pandemic levels and was reported to be 4 percent higher than in 2023, with consumer spending also up by 3 percent. Seaborn attributed part of this growth to the £46 million investment in repaving Sloane Street.

“This investment came at an opportune moment, especially considering the current slowdown in the global luxury market. It will significantly support our businesses during a crucial time,” he remarked.

Despite the challenges posed by rising taxes and employee costs, as well as the conclusion of tax-free shopping for tourists, retailers are still paying record rents to maintain their presence in Chelsea. “As footfall and retailer trade continue to rise steadily, rent prices are naturally responding,” Seaborn added.

New arrivals to Chelsea last year included women’s fashion brands Zimmerman and Temperley London, alongside Trinny London, which marked its debut with Trinny Woodall’s first beauty boutique on King’s Road.

The Cadogan family, led by Edward, the 9th Earl Cadogan, has been a significant landholder in west London since the early 18th century, following the marriage of one of their ancestors to the daughter of Hans Sloane, a physician to the royal family.

In 2024, the family received dividends amounting to £46.7 million, reflecting a 28 percent increase from £36.6 million in 2023. A “significant proportion” of this revenue is earmarked for the decennial inheritance tax, which was around £210 million the last time it was assessed in 2022.