Foreign investors capitalise on London office market
With the market making headway in recovery, foreign investors are once again cashing in on London office property
Investors from the East are once more making investments in the London commercial property market, which is great news for those moving to London office space. More than £2 billion worth of investments in office property in the capital were made over the course of June 2010 signalling a return to health for foreign interest.
Faith in the capital’s commercial property market is good news for those seeking reassurance when searching for desk space in London.
According to reports, Chinese, Malaysian and Korean investors are leading the pack and seeking to cash in on the recovering commercial property sector in London. Increased confidence has been demonstrated by acquisitions such as Park House in Oxford Street by Qatari.
In a report by Property Wire, London investment consultant Steven Down outlined how the recent negotiations over River Court, the £300 million property of Goldman Sachs, exemplified why foreign investors are putting their hands in their pockets to support the London commercial property market. He said of the property:
‘This is a good example of the type of trophy stock that appeals to the overseas market. It has been owned by the same group since it was developed in 2000 and is let to Goldman Sachs for another 15 years.
It is a modern Grade A building secured to an international tenant on a long lease and the rent is low at only £36 per square foot overall compared with recent lettings on similar space at over £50.00 per square foot. It offers the investor access to the growth in rents over the next three to four years.’
