Real estate adviser Savills increased its pre-tax profits by 173% to £37 mln last year but warned that the future of its Asia Pacific operations remains uncertain.
Real estate adviser Savills increased its pre-tax profits by 173% to £37 mln last year but warned that the future of its Asia Pacific operations remains uncertain.
'It is unclear how markets will react to the recent catastrophic events in Japan, particularly at a time of unprecedented global economic and political change,' said Jeremy Helsby, Group Chief Executive. 'For the markets of mainland China, Hong Kong and Singapore these events come on top of government measures of the last 12 months to address property speculation.'
Although the longer term potential of Savills' Asian business remains compelling, the company continues to expect a reduced volume of transactions in the region in 2011. The forecast slowdown in Asia should, however, be largely offset by improving performances elsewhere, Helsby said.
Group revenue rose by 21% to £677 mln in 2010, mostly driven by a resurgence of investment activity in prime global markets, most notably in London and a number of Asian capitals. The figure compares with revenues of £561 mln in 2009. Helsby: 'It was also encouraging to see conditions improve in the US and the key French and German markets, although the trend was not consistent across all of Continental Europe.'
Cordea Savills, the group's fund management business, improved its performance in the first year of Savills' full ownership, increasing its assets under management by 12% to £2.8 bn in the course of 2010.
Looking forward, the group anticipates further recovery in the US and parts of Continental Europe, some growth for the prime London Residential and Commercial businesses and continued growth in Fund Management.
