Grosvenor has reported a strong performance from its UK property business in 2025, although weaker conditions in North America weighed on the group’s overall results.
In its annual results published today, the international property and investment business reported UK property underlying profit of £88.7m for the year, up 14% on 2024, while revenue profit rose 15% to £88.8m.
The UK portfolio delivered a total return of 5.1% and maintained a 97% occupancy rate, supported by resilient income across its central London estates, and continued leasing demand in the retail, office and residential sectors. In its London portfolio, the notable lettings during the year included Crisp Pizza in Mayfair and JW Anderson’s first interior-led store in Belgravia.
Across the wider international property division, however, profits were impacted by falling values in North America. Grosvenor reported international urban property underlying profit of £70.5m, down 18% year-on-year, while the division recorded a revenue loss of £23.2m. Total return across the international property business stood at 0.9%, compared with 3.4% the previous year.
North America generated a revenue loss of £108.3m and a negative total return of 6.6%, with Grosvenor attributing the decline primarily to reduced asset values for development projects that were particularly sensitive to market volatility and investor sentiment.
Alongside the results, Grosvenor outlined a revised international property strategy that will focus direct investment activity on large-scale assets in its core UK and Canadian markets, while expanding its joint-venture platform, Grosvenor Diversified Property Investments (GDPI), to broaden international exposure through partner-led value-add investments. All future US investments will be made through GDPI.
GDPI, which invests globally across sectors including student housing, logistics and healthcare facilities, delivered yielding revenue profit of £9.6m and a total return of 2.8% after completing several planned exits during the year.
Looking ahead, Grosvenor said it would continue to progress several major development projects, including the reopening of Grosvenor Square in July 2026 following a major redesign, the mixed-use South Molton development in the West End, which is progressing towards practical completion in 2027, creating a new leisure and retail destination alongside 267,000 sq ft of best-in-class offices in partnership with Mitsui Fudosan UK and the next phases of the Brentwood Block neighbourhood project in Vancouver.
James Raynor, Grosvenor Property chief executive, said: “In a challenging year for global real estate, our international property performance reflected diverging market conditions, with a strong UK performance helping to offset weakness in North America.
“Our refreshed international property strategy better leverages Grosvenor’s strengths. Focusing direct investments on our core markets of the UK and Canada and further diversifying internationally through joint ventures, gives us the right foundations for continued growth. We are seeing strong opportunities around the world, including in the US. Our pipeline of major developments in London and Vancouver reflects our long-term commitment to the portfolio, advancing transformational, sustainable projects that will create value not only for the business, but also for local communities and economies.”
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