The property portfolio of the Grosvenor Group, one of the world’s largest privately owned property companies, recorded profits of £143.5 million (US$200 million) in 2017, over 81% higher than the previous year when it brought in £79.2 million (US$110.3 million), according to a report from the London-based group on Tuesday.
Despite the profits, the Grosvenor Group—essentially the real estate holdings of 27-year-old billionaire Hugh Grosvenor, the 7th Duke of Westminster—logged returns of 2.7%, down from 8% the year prior.
More:Hong Kong Peninsula Estate Hits Market for HK$280M
The weak value of the pound and the U.K.’s constrained economy are to blame, according to the report, which highlighted the benefits of operating internationally.
Almost half the portfolio is comprised of holdings in London’s West End, including swanky Mayfair and Belgravia. Another 49% of Grosvenor’s property assets are now held outside of the U.K.
It was the international assets that proved most fruitful to the group, with profits mostly buoyed by Grosvenor Americas, which raked in £71.6 million (US$99.79 million) last year, accounting for almost half of Grosvenor’s total revenue.
From Penta:Modigliani’s ‘Reclining Nude’ to Sell For at Least $150 million
In comparison, Grosvenor Group in Britain and Ireland recorded £48.4 million (US$67.45 million) in profits.
"Despite Brexit, the U.K. remained fairly resilient in 2017," said Mark Preston, chief executive of Grosvenor Group, in the report. "However, it feels like a uniquely uncertain time, and it is this, more than Brexit per se, which is likely to constrain growth in the economy in 2018 and 2019."