Investors from Asia have shown renewed interest in London properties as they continue to seek out alternatives to stocks and bonds.
Photo credit: The Leadenhall Building
2016 saw Britain’s vote for Brexit resulting in just that, and property sales in Central London were at a 5-year low as uncertainty shrouded the country with effects that trickled down somewhat to the rest of the world. Property owners were wary about selling amidst fear that the Brexit might vote might lower property values. Chinese and Hong Kong investors have however been eager to put their bet on commercial properties in London, spending $2.9 billion on central London offices last year alone. It is not surprising since the weaker pound has lost almost 16 per cent against the Hong Kong since Brexit.
The recent sale of the Leadenhall Building, nicknamed the Cheesegrater Tower, by British Land and Oxford Properties to Chinese developer CC Land, run by the Chinese property magnate Cheung Chung-Kiu, for $1.5 billion has spurred on sales of other properties. Office buildings such as Walkie Talkie and 20 Canada Square in the Canary Wharf financial district have since been put up for sale.
Photo credit: Brookfield Properties
Yields in London have continued to hold its own despite the negative atmosphere surrounding Brexit and landlords of well-leased commercial buildings in prime locations can still look forward to offers from Asia-Pacific investors on the hunt for long-term investments.