INDUSTRY NEWS

Commercial property in London could be set for new owners

A large amount of commercial property in London could be up for sale in the coming months after it was revealed the Grosvenor private investment company is struggling to reduce its borrowings.

According to the Guardian, the investment group owned by the Duke of Westminster may be forced to sell off some of its estate in order to stay afloat.

The impact of the global economic crisis has hit the company hard by reducing land values, resulting in the worth of its assets falling considerably, making it difficult for the group to pay back its loans.

If Grosvenor did decide to sell off some of its property, it would present a major opportunity for those looking for commercial property in London, as the investment vehicle has stakes in a number of major holdings.

Grosvenor has in the region of £13 billion in its property portfolio, including London offices and other buildings around the country. The vast majority of that wealth is centred on Mayfair and the duke has remained true to the family tradition of never selling any of his property.

But experts are warning that may have to change, resulting in a glut of offices in London becoming available to invest in.

Last week, Park Lane Properties said it was temporarily postponing work on its luxury apartments in Park Lane as the recession takes its toll.
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