Queen’s property firm earmarks £1bn for decarbonisation push


The Crown Estate should pay as a lot as £1bn to make its property greener over the subsequent few years so as to meet carbon targets, indicating that the prices of the power transition will probably be far larger than property homeowners have up to now forecast.

“It is a moving target but it will be a substantial amount of capital over the next 5-10 years, not just in London but across our rural and regional estate as well,” mentioned Robert Allen, chief monetary officer of the sovereign’s property firm.

The property is aiming to be a web zero enterprise by 2030, which would require decarbonising a portfolio together with chunks of the West End and Regent Street in London, regional purchasing centres, one of many largest land holdings within the UK and far of the nation’s seabed.

Allen estimated it might price between £500mn-£1bn to cut back emissions from the property, which is managed within the public curiosity, returning earnings to the Treasury which in flip allocates a “sovereign grant” to the Queen to cowl the upkeep of assorted palaces.

A mix of rising regulatory requirements and tenant demand have inspired landlords to take motion to make their portfolios greener. But the £1bn price estimated by the Crown, which equates to greater than 6 per cent of the general portfolio worth, is excess of most have earmarked.

“No one has the answer, everyone is guessing a little bit,” mentioned Allen. “In two or three years time we’ll have a much better feel, having decarbonised some of the estate. We’re very much at the beginning of the journey,” he added.

The property indicated indicators of restoration from the coronavirus pandemic because it reported annual outcomes on Thursday, producing £313mn in web income revenue for the general public purse within the 12 months to the top of March, a £43mn enchancment on the prior twelve months.

The worth of the property’s portfolio additionally jumped within the interval, rising greater than 8 per cent to £15.6bn, pushed by a leap within the worth of the corporate’s marine holdings.

The enterprise has historically derived revenue from business property. But falling actual property values and booming demand for clear power means the enterprise is more and more targeted on the administration of the seabed round England, Wales and Northern Ireland.

While the worth of the property’s London holdings was flat over the monetary 12 months at £7.7bn, that of the marine portfolio jumped 22 per cent to £5bn.

“The demand for marine space is greater than ever due to the need to strengthen domestic energy supplies and hasten the UK’s low carbon energy transition,” mentioned the property, which leases seabed rights to firms to develop offshore wind tasks.

Those rights are in excessive demand from oil majors equivalent to BP and Shell which have dedicated to pivot away from fossil fuels. According to the property, offshore wind era from wind farms on its land now energy virtually 9 million houses within the UK, equating to greater than 10 per cent of the nation’s total electrical energy want.


Source: www.ft.com