The Howard de Walden Estate – Year in Review 2025

 A year of growth, innovation and responsibility

2025 has been a year of strong progress for Howard de Walden as we continued to deliver on our strategic objectives across both Marylebone Village and the Harley Street Health District. Despite the continued challenging economic backdrop, our long-term approach, clear strategy and unique offering enabled us to achieve record rental income, advance sustainability initiatives, and welcome exciting new customers to our community.

Business performance highlights

• Rental income growth: We achieved a 8% increase in rental income, rising to £164.1m from £152.2m in 2024, driven by robust demand across all sectors – healthcare, retail & leisure, office and residential.
• New lettings: 774 new lettings were signed during the year, equating to £39.4m of income, an 11.3% uplift on the previous year.
• Profitability: Pre-tax profit reached £172m, reversing prior-year losses, supported by an £87m gain from property revaluations.
• Portfolio investment: Over £65m invested in maintenance and enhancements, with a focus on repositioning office spaces and expanding the Harley Street Health District.
• Financial strength: Cash and undrawn facilities totaled £177.8m, underpinning our ability to invest for future growth.

Portfolio highlights & placemaking

• Harley Street Health District: Following its rebrand last year, HSHD is going from strength to strength, cementing itself as the Home of Whole Health, and is now a hub for cutting-edge healthcare innovation. We launched Hale House, a £25m HealthTech innovation hub offering flexible workspaces, event facilities, and collaboration opportunities for startups, investors and healthcare pioneers. Already anchored by UCLPartners and the NHS Innovation Accelerator, Hale House has recently welcomed a number of other leading occupiers including Forte Medical, Trem, CareLoop Health and Health Innovation Kent, Surrey and Sussex, while leading healthcare provider, Cedars-Sinai, is also opening its flagship UK clinic in Marylebone next year.
• Marylebone Village: Demand for retail and leisure space remained exceptionally strong, with occupancy levels close to 100%. Retail income grew 9%, and office income surged 16.3%, reflecting the appeal of Marylebone as a vibrant destination for businesses and residents. We recently welcomed a host of new names and significant upsize and renewals to the village, which include Tekla Fabrics, VINCE, Soeur and Flabelus while new dining offerings include Kudu and Farmer J.
• Commercial: Investing in refurbishments and developments across our office portfolio have seen positive results and we expect this sector to continue to grow – potentially to as much as 25% of our entire portfolio – after a challenging period in the aftermath of Covid-19. Our flexible office offering, Elmtree, is also expanding and we’ve found that our central location and desirable amenities are a key selling point to occupiers.

Sustainability & community successes

Our deCarbon strategy, launched in late 2023, continues to guide our journey toward net zero carbon by 2040. Key achievements this year include:

• Energy & carbon assessments: Completed detailed assessments across 14 buildings, implementing recommendations to improve energy performance and reduce emissions.
• AI-Powered audits: Piloted digital twin technology to accelerate decarbonisation and improve operational efficiency.
• Sustainable procurement policy: Rolled out a new policy to embed responsible sourcing and carbon reduction across our supply chain.
• Planet Mark recognition: Proudly awarded for Supply Chain Engagement, having engaged 98% of suppliers to drive sustainability transformation.
• Community remains at the heart of our operations. We contributed £0.9m to local charities and initiatives, hosted cultural events, and continued to nurture Marylebone’s unique character through partnerships and heritage stewardship.
• We have supported 37 local Westminster charities through funding and by contributing over 697 volunteer hours, with colleagues dedicating their time and skills to deliver meaningful support to local causes

It’s been a strong year, and we are confident as we look ahead to 2026.

With a strong financial foundation, a dynamic pipeline of developments, rising occupancy across the portfolio and a clear sustainability roadmap, Howard de Walden Estate is well-positioned for continued growth.

Our focus for 2026 will be on delivering 47,000 sq ft of new healthcare and office space, expanding our UK leading HealthTech offering, and accelerating progress toward our net zero goals.

Mark Kildea, Chief Executive commented:

"2025 has been a year of resilience and positioning for growth. We have delivered strong financial performance, advanced our sustainability commitments, and continued to shape Marylebone as a thriving destination for healthcare, retail, and community life. Our focus remains on the curation of Marylebone Village and the Harley Street Health District, investing in our portfolio, supporting innovation, and working toward our net zero goals. Thank you to our partners, customers, and the Howard de Walden team for making this progress possible. Together, we are building a future that balances heritage, community, and economic and social impact."