Mayfair's Biggest Landlord is Licking Wounds After the Property Downturn

Duke of Westminster inherited The Grosvenor Property Company founded in the 17th century. At the moment he is one of the wealthiest people in UK and Mayfair's biggest landlord. However the long history of the company didn’t prevent him from the loss of hedge fund offices and banking money. The recession of the housing market was so dramatic that the major part of the UK's wealthiest landlord was at risk to become in arrears. The Duke of Westminster's Grosvenor property company was not an exception. Last year the losses of the company amounted to £594m compared to profit of £524m in 2007. Swanky Mayfair area, including Grosvenor Square and an extensive area to the south of Hyde Park Corner with Belgravia landmarks such as Eaton Square belong to Grosvenor. The company itself is owned by the sixth duke and his family. The destruction of hedge funds and the mass bankruptcy of the City bankers resulted in a drop in property values, especially in the areas which were under the control of the Duke. The loss of profit has become the most remarkable for the last 16 years. The write downs on the values of properties and investments came to a £1.3bn downfall in money equivalent as long as the drop in the value of the Liverpool One retail park opened last May was estimated in £165.3m. For property industry the year of 2007 was definitely a challenging year and Grosvenor could not stay aside the influence of economic downturn. Grosvenor said that its net asset value decreased to £2.8bn, which makes 7.4 per cent. Net asset value is measured by the value of properties of the company minus the value of its liabilities. Mark Preston, chief executive, is confident that in the year of 2009 Grosvenor will recover and have good perspectives for  further development due to significant financial capacity, though continued credit restrictions and poor confidence in the occupier markets will probably make the year of 2009 quite complicated. The excellent buying opportunities can become beneficial for the company in general. At the moment possessing a certain sum of money in cash (totalling £523m), Grosvenor is looking forward to reinvestment in its core London portfolio and in Asia. Of course, the downturn damaged the Gerland Grosvenor's position in the UK rich list. Last year the Sunday Times recognized him the third behind steel magnate Lakshmi Mittal and Chelsea football club owner Roman Abramovich.