Cadogan announces strong 2024 results across Chelsea portfolio

Cadogan today announces a 16.6% increase in operating profit, underpinned by robust demand across the portfolio and strong progress against environmental and community objectives. Total income grew 11.8% to £241.4m (2023: £216.0m), while the property portfolio value increased 1.3% to £5.7bn (2023: £5.4bn).
£211m was invested in purchases and developments to protect and enhance the Estate’s long-term position as one of the world’s leading locations to live, work, and visit.
Hugh Seaborn, Chief Executive, Cadogan, comments:
“Against an unpredictable geopolitical backdrop and muted domestic economy, our strong performance is founded on the momentum built over many years through strategic leasing activity, development schemes, public realm projects and consistently balancing short-term profit against long-term neighbourhood prosperity.
Our priority remains building the resilience and appeal of Chelsea as a destination – from a 70% increase in the number of food and drink locations since 2020, to strengthening Sloane Street’s international reputation and culture-led placemaking that emphasises the area’s distinctive character.
With added threats from tariffs, cooling of the global luxury market and the continued loss of tax-free shopping in the UK, projects such as the Sloane Street transformation are vital to create stand-out appeal and encourage consumer dwell time and increased spend. It has already seen a significant impact on footfall since its completion earlier this year and clearly demonstrates the growing importance of physical retail for luxury brands as part of a beautifully curated, compelling environment.
We have invested almost £500million into developments, purchases and public realm over the last two years. As the impact of online shopping has matured, successful retailers recognise that the physical consumer experience is paramount – we are aware that our role is progressively that of ‘stage manager’, curating an enticing environment that allows business and community to thrive.
It is a delight to see The Gaumont’s creative quarter now coming to life, a new anchor for the King’s Road and part of a wider revitalisation plan for one of the world’s most famous high streets. Our strong financial and operational position allows us to continue investing in the community and building Chelsea’s long-term appeal.”

Long-term investment in Chelsea
As a long-term, family-owned property business with a geographical concentration of ownership over 93 acres of Chelsea, Cadogan is able to curate a compelling destination that balances both short- and long-term considerations.
This approach has contributed to positive revenue growth for occupiers, outperforming London footfall and consumer spend trends. The past year has been marked by several successful developments, including:
Completion of the £46million Sloane Street transformation, in partnership with the Royal Borough of Kensington & Chelsea, resulting in a beautiful green boulevard over the full 1km length of the street and reaffirming London’s position alongside Paris and Milan as a premier luxury fashion destination. Designed by renowned public space architects John McAslan and Partners, it features wider pavements, enhanced lighting and extensive planting designed by multiple Chelsea Flower Show Gold-winning landscape designer Andy Sturgeon
Retail vacancy levels averaged 2.9% (2023: 3.2%) and 40 new retail lettings and renewals saw annual rents achieving an average of 8.3% above ERV
Success in securing first-to-London brands as illustrated by exciting new businesses including Trinny Woodall’s first flagship beauty boutique, Trinny London; Farm Rio’s first stand-alone store in Europe, and Elad Yifrach’s first London boutique L’Objet
Robust demand from target brands on Sloane Street, including cult women’s fashion house Zimmerman and bohemian fashion brand Temperley London. Brunello Cucinelli upsized, tripling the size of its boutique and Saint Laurent opened an enlarged Maison
Marketing The Gaumont, a mixed-use development on the King’s Road, and securing major international retail fashion brands for the flagship King’s Road shops, which will draw footfall westwards strengthening trade along the street
Continuing to celebrate Chelsea’s rich heritage of art, literature, fashion, and music through an engaging new ‘creative quarter’ on Chelsea Manor Street, nurturing young creative enterprises, complemented by new ‘pub theatre’ The Trafalgar

Building a sustainable future
Cadogan’s strategy and purpose are predicated on contributing to a flourishing and sustainable community. 2024 saw strong progress towards many targets, notably a 17% increase in green infrastructure with a 175% boost to Biodiversity Net Gain delivered through the major Sloane Street ‘greening’ project; however, reducing carbon emissions remains both the most pressing and challenging area and decarbonisation projects are progressing at scale across the Estate.
Creating social value lies at the heart of Cadogan’s commitment to a sustainable future, and over £4.5million was committed to community and charitable projects including £1.1m annual subsidy of keyworker and community housing; significant employment and skills support; reaching over 23,300 of the most disadvantaged and vulnerable residents as Principal Supporter of the Kensington + Chelsea Foundation and new Cadogan Community Grant Programme.

Portfolio overview
Retail
Retail remains Cadogan’s largest sector at 46.2% (2023: unchanged) of the portfolio by capital value and 45.3% of income (2023: 47.3%). Retail gross rental income increased by 3.1% to £99.0m per annum. The increase in capital value was mainly the result of ERV growth primarily across King’s Road and Duke of York Square, as a result of rental levels achieved on new lettings and renewals. Investment yields have remained static.
Retail vacancy levels averaged 2.9% (2023: 3.2%) and 40 new retail lettings and renewals amounted to annual rents achieved an average of 8.3% above the ERV. This robust demand continues to allow Cadogan to be exacting in retailer selection, while maintaining core leasing criteria and protecting the ability to curate the neighbourhood.
As the impact of online shopping has matured, successful retailers have recognised that the consumer experience is paramount, leading them to combine their digital and physical channels to provide their customers with a seamless experience. These retail businesses now require fewer stores, but these must be in the best locations. This supports our strategy of managing the whole area to create a compelling and exciting destination and in so doing, strengthening the ability of retailers to trade successfully.
Residential
The residential portfolio remains second in total value after retail, representing 25.3% (2023: 27.4%) of total portfolio value and 20.0% (2023: 20.1%) of total income. Total rental growth on new lettings, rent reviews and extensions was 4.1%, supported by a constant programme of investment in the quality of accommodation.
Despite acquisitions and development expenditure totalling £13.4m in the year, gross value declined by 1.2% due to planned disposals of non-core properties and leasehold enfranchisement.
Leisure & Other
Leisure and Other uses account for 15.7% of the value of the portfolio, up from 13.3% in 2023. Rental income increased by 30.3% and now accounts for 16.3% of the total portfolio, up from 13.4% in 2023. These increases were primarily the result of further deployment of capital in the regional commercial portfolio during 2024. Over the last five years the number of food and drink locations (including those in development) has increased by 70% from 33 to 56.
The Estate’s directly operated hotel portfolio has continued to progress over the past few years, achieving the aim of delivering high quality hospitality venues with a diversity of styles and pricing and to maximise revenue. In addition, cultural establishments such as Cadogan Hall, the Saatchi Gallery and Royal Court Theatre, contribute to the identity and character of Chelsea while collectively attracting thousands of visitors, ensuring that Chelsea’s rich cultural heritage is celebrated and remains at the forefront of the London culture and arts scene.