London landlord Soho Estates swings to loss as commercial property values fall despite revenue jump
The portfolio of central London property group Soho Estates dipped in value last year and dragged the firm to a loss even as revenue bounced back to pre-pandemic levels, accounts have revealed.
Soho Estates, founded by pornography baron Paul Raymond in the 1960s and now controlled by his two granddaughters, revealed revenue rose £7.6m to £37.1m in 12 months to the end of March on the back of “a stable tenant base.”
However, the firm’s property empire which spans offices, hotels and restaurants in the capital dipped in value by £15.1m to around £1.1bn as the firm felt the pinch of rising interest rates.
Commercial property prices have dropped over the past 18 months as central banks moved to hike interest rates to tame inflation. The swing in valuation helped drag the firm to a loss of £184,000 compared with a pre-tax profit of £108.9m the previous year, accounts showed.
Soho Estates’ devaluation came after an £87.7m uplift the previous year due to its new-build, mixed-use building, Ilona Rose House.
“[The devaluation] was in line with expectations of the market at the time,” said John James, managing director of the firm.
When Paul Raymond died in 2008, he passed on ownership of the group to granddaughters Fawn James, a director at the firm, and her sister India Rose James. The firm is managed by their father John James, a former model and mentee of Raymond.
Raymond’s property empire grew from the famous Soho strip club the Raymond Revuebar and spread across the capital. The sisters and their family have an estimated net worth of £758m, according to The Sunday Times Rich List.