Good News from the City for Property Investors

Despite the uncertainty over Brexit, foreign investors are still keen to invest in the City. We take a look at the latest property investment deals and what it means for its neighbours.

Whichever paper you read the outlook for the economy looks uncertain. However, and possibly due in part to a weakened pound, the commercial property market in central London has defied expectations of a Brexit downturn and has attracted a good level of investment.

Savills noted at the end of August that over £2.4bn was invested in commercial property in July. Total turnover for the year to the end of July was £11.5bn.

Real estate consultancy Cushman Wakefield reported an increase of £1.38bn in commercial property investment in central London in the first half of 2017, compared to the same period in 2016. Much of this has been from overseas, with Asian investment in central London being at its highest since 2012.” Investment has in fact reached £4.07bn – making up 46% of the central London market.

Notable acquisitions in the city include The Cheesegrater and Walkie Talkie building on Fenchurch Street, which was sold to a Hong Kong-based company.

James Beckham, Head of London Capital Markets at Cushman Wakefield Asia Pacific said “investors are set to continue with strong ongoing interest in assets right across the risk spectrum.”
There has also been an increasing interest from European investors. Four deals valued at over £200m in the City were by European investors, of which three were German including the acquisition by Deutsche Asset Management of 2 & 3 Bankside.

So what can we take from this? The City doing well or poorly has a knock on effect with the surrounding areas including Essex and this news should be encouraging for the property market, after so much concern about Brexit and the UK’s access to the single market. 

MORE INFORMATION 

If this trend is leaving you feeling encouraged to start moving again call our Commercial Property Department who will be happy to help with all your legal property issues. Call on 01708 229444 or email us using the form above. This article was written by Julien Pritchard, Partner at Pinney Talfourd LLP Solicitors. The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. Specific legal advice should be taken on each individual matter. This article is based on the law as of October 2017.