People sat around boardroom table talking

Our strategy

 

The Group’s strategy reflects the objectives agreed with our shareholders – the Trustees of the Grosvenor Estate.  It sets out what we intend to deliver, in terms of financial performance, diversification and reputation.

The Group has three objectives:

  • To deliver attractive long-term returns.
  • To develop and co-ordinate an internationally diversified property group.
  • To uphold Grosvenor’s reputation for quality, integrity and social leadership and responsibility.

Grosvenor's strategy for achieving these objectives is as follows:

First, to deliver attractive long-term returns:

Via strategies employed by our operating companies and indirect investments, we aim to deliver total returns above weighted average cost of capital (WACC) and which are attractive relative to market benchmarks, subject to growing revenue profit sufficient to at least cover dividend and tax obligations. We control risk by means of conservative gearing, management of liquidity and diversification at the corporate level, and by rigorous management of projects at the property level.

Second, to develop and co-ordinate an internationally diversified property group:

We diversify by geography, sector, currency, property activity and management. Our structure provides three routes to achieving this: direct proprietary activities, indirect proprietary activities and fund management. We allocate capital between these having regard to macro-economic and global social trends and, increasingly, allocating by reference to the economic growth and environmental resilience of the world’s major cities.

Third, to uphold Grosvenor's reputation for quality, integrity and social leadership and responsibility:

We recruit and develop people who share the values of Grosvenor –expertise, integrity, loyalty and long-term vision - and have the skills and ambition to help us implement our strategy.

We deliver upon our promises, build lasting relationships with partners and work closely and responsibly with local communities.

Supporting this strategy, our 'Living cities' philosophy whereby we use our expertise as stewards (asset managers) of existing property, as place-makers (developers) of new projects, and as fiduciaries (fund managers) of capital to create high-quality places for people to enjoy and which use resources responsibly.

Bringing all this together, our vision for Grosvenor is to grow as a private, diversified property group, active internationally in several sectors, and taking a long view of markets and our commitments. We want Grosvenor to be recognised for strong financial performance; excellence in quality of design and service delivery; and for the lasting impact of our values on what we do and, especially, how we do it.

Watch a short video of Mark Preston, Grosvenor Group CEO, talking about our strategy.

group@grosvenor.com

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