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Why Asian investors are pier billions into London’s iconic skyline


Canary Wharf and the city are seen at nightfall in London, Dec 14, 2016.
Canary
Wharf and the city are seen at nightfall in London, Dec 14,
2016.

Reuters / Eddie
Keogh


  • Overseas investors continued to flow income into
    London’s pricey offices last year, driven by Asian investors
    who snapped up landmark buildings including the “Walkie Talkie”
    skyscraper.
  • Over half of abroad investment in 2017 came from
    Asia. 
  • £5.85 billion of abroad investment in 2017 was from
    Hong Kong.

LONDON — Overseas investors continued to flow income into London’s
pricey offices last year, driven by Asian investors who snapped
up landmark buildings including the “Walkie Talkie” skyscraper.

Real estate organisation CBRE pronounced investors spent £16.4 billion on
bureau buildings in the collateral in 2017, 26% some-more than the
prior year. About 81% of those deals were finished by
abroad purchasers, and £6.9 billion, or 54%, of investment
was from Asia.

Of that, a record £5.85 billion of abroad investment was from
Hong Kong, aloft than the sum HK investment in London for the
last 3 decades combined. 

Some of those Hong Kong exchange were big-ticket buys,
including the record £1.3 billion ($1.7 billion) squeeze of 20
Fenchurch Street — famous as the Walkie Talkie — and of
the £1.14 billion 122 Leadenhall Street,
nicknamed the Cheesegrater.

Much activity in the blurb London marketplace from Hong Kong
comes from several obvious investors who already hold
high-value resources in the capital. Many of them are looking
to boost their exposure, captivated by long-term leases, a
ignored pound, and London’s “safe haven” status.

Read more:
What’s pulling Chinese investment in London real
estate?

“London has been a focal indicate for global investors since
recuperating from the [2008] financial crisis, with interest
reaching a new high peaking in 2017,” pronounced Chris Brett, conduct of
general collateral markets at CBRE. 

“This was mostly driven by the landmark sales of 20
Fenchurch Street and 122 Leadenhall Street, which both
sole for some-more than £1 billion.”

He pronounced that London looks nearby fully-priced, which is pushing
investors to demeanour outward of London for the best value.

“Increasingly over the march of the last 12 months we have seen
this call of investment into London pulling collateral into more
affordable, up-and-coming cities like Manchester and Birmingham,
as some investors are incompetent to contest with the international
income coming into London,” he said.

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