The Queen’s property portfolio, The Crown Estate, enjoyed record returns of £328.8m last year, up 8.1 per cent year-on-year.
The total value of its property portfolio, which is concentrated in the West End, rose 5.5 per cent to £12.4bn for the year ending 31 March.
Central London rental growth driven by leasing new space in completed developments, such as St James’s Market and One New Burlington Place, helped push up the Estate's earnings.
Over 400,000 square feet of retail and office space was let during the period across the central London portfolio for a total rent of £34.4m per annum, the firm revealed. The firm returns all its profit to the Treasury.
Alison Nimmo, chief executive of The Crown Estate said: “This outperformance reflects many years of disciplined market positioning in our chosen sectors and has made our business resilient at a time of political and economic uncertainty.
"For over a decade we’ve carefully timed our development pipeline, focussed on creating brilliant places in the best locations and maintained our active support of the UK’s world-leading offshore wind sector.
“Looking ahead, we expect returns to remain subdued, but we are confident in the underlying strength of our markets and our commitment to quality in what we deliver. Following a record year of capital activity, this year will see the launch of two major retail schemes at Rushden and in Oxford, and the continued preparation of the next phase of our development pipeline in central London that will form the backbone of our long-term performance.”
The Crown Estate also revealed that investments in offshore wind generated £27.7m for the business.
It said: "There are 30 wind farms with a total of 5.1GW of operational offshore wind and a development pipeline into the 2020s. Asset management activity included signing over 2.6GW of leases in 2016/17 for four projects. This included agreeing the lease for the 1.2GW Hornsea One offshore wind farm with Dong Energy, which once complete will provide enough electricity for one million homes."