Demand for Marylebone Village spots drives gains at Howard de Walden
Rental income at the Howard de Walden estate has soared thanks to demand for retail and office spaces in Marylebone and Harley Street.
Despite only a 1.1 per cent increase in property values in the year to March 21, rental income increased by 7.8 per cent to £164.1m from £152.2m in 2024, the estate said.
It signed 774 new lettings during the year, equating to £39.4m of income.
“The positive results for the year are a direct reflection of the investment and hard work the team has undertaken over several years,” CEO Mark Kildea said.
The estate reported a pre-tax loss of £254.2m for the year to 31 March 2024, and a £102.3m loss the prior year.
“Demand for space continues to outstrip supply in a number of our key portfolio areas… with Marylebone Village providing a heightened community feel across our retail, office and residential sectors,” Kildea added.
The Howard de Walden Estate manages a portfolio of over 800 properties in a 95-acre area of Marylebone.
Income from the estate’s office portfolio rose 16.3 per cent year on year, the largest increase across any sector.
Retail income rose 7.9 per cent during the year, with occupancy levels of close to 100 per cent.
Harley Street focuses on health tech
Harley Street, long known for being a health hub in London, has recently undergone a rebrand to focus on health tech, aiming to tackle “ageing diseases” like Alzheimer’s rather than cosmetics.
In 2023-24, plastic surgery made up only seven per cent of private stays in the district, while cancer treatment accounted for 27 per cent and digestive health 25 per cent.
“Harley Street has been the Home of Health since 1860, and we aim for it to be the Home of HealthTech from 2025,” chair Sir William Proby said.
Rental income in healthcare properties, which cover around 40 per cent of the estate, rose 4.8 per cent during the year.
Continued growth within the sector is expected, supported by a development pipeline with an estimated rental value of £4m.
Howard de Walden expects to deliver around 47,000 sqft of new space over the next two years.