Crown Estates, which manages the Queen of England’s portfolio, recently wrote down the value of 17 shopping and leisure centers by 17%, cutting Her Majesty’s net worth by £552 million. As The Economist points out, this is “fairly small beer” set against the £13.4 billion valuation of the Queen’s property portfolio, which includes some of London’s toniest real estate.
But the Queen will not be left out of pocket, since her income — set at 25% of the profits generated by the Crown Estate — will be topped up with a taxpayer bailout. In fact, thanks to the Sovereign Grant Act of 2011, the overall amount given to the Queen each year in order to fund her official duties is never allowed to fall, regardless of what is happening in the broader economy.
Shaftesbury, a real estate investment trust (REIT) that mainly rents to independent retailers in London’s West End, reported on Friday that for the six months to September so far, it had collected just 41% of rent due. Ten percent of rents are expected to be subject to deferred collection arrangements; 23% are being waived and 26% remain outstanding. By the end of August, its vacancy rate had risen to 9.7% of estimated rental value, compared to 4.8% at the end of March.Commercial Real-Estate Fallout Even Douses the Queen of England | Wolf Street