More Than Half Of City Offices Now Owned By Foreign Investors

More Than Half Of City Offices Now Owned By Foreign Investors

By:




Perhaps unsurprisingly, a new report suggests that foreign investors now own the majority of commercial property in Londons square mile, proving it is more attractive to foreign investors than ever before.

The Who Owns the City report, the fourth of its kind prepared by the University of Cambridges Department of Land Economy for Development Securities PLC, reveals that foreign investors now own 52% of the Square Miles office stock.

Foreign investors accounted for just 8% of the Citys office ownership in 1980; 21% in 1990, and 35% in 2000. It has been growing at a steady rate, and proves that the Citys business property has continued to prove a safe investment throughout the global economic slowdown. German investors are the largest overseas owners, with 16% of the Citys office territory, while US investors now own 10%.

Foreign investors account for two thirds of acquisitions by value in the last four years. Since 2003, it is calculated that overseas investors have spent in excess of 26 billion on London business property, which makes London the hottest location for inward office investment in the world, including Frankfurt and New York. The degree to which overseas buyers perceive City assets to be of higher quality and to offer increased potential returns is reflected in the purchase prices. The average price expended by foreign buyers between 2008 and 2011 was 91 million compared with 27 million from UK investors.

The report also shows a changing profile of City office owners. "Traditional owners", such as established property companies, have been relinquishing their office ownership, while specialist real estate investors have increased their share of City office quarters to 45%, while 6% of City office space at least is held by private investors.

Michael Marx, Chief Executive of Development Securities PLC, said: "Londons attractiveness to foreign investors has clearly been undeterred by the widespread economic turmoil. City offices are perceived to offer quality and transparency a safe haven for foreign buyers who have, in turn, deepened liquidity in the market. It could be argued that these overseas investors, now in the majority, are critical to future values in the City. The question is: will the level of foreign ownership continue to rise dramatically?

"It is clear that the viability of City offices continues to depend on the strength of Londons financial services sector. The specialization of international financial services in London has served to make the fortunes of owners and occupiers intrinsically linked, creating a highly volatile, one-horse town. The challenge for policymakers will be to ensure that the financial services sector, the very life blood of the City, can continue to flourish."

About the Author:
Looking for a UK Property or to commercial property in the UK, find lettings and commercial property to let in the UK? www.ukbusinessproperty.co.uk



Article Originally Published On: http://www.articlesnatch.com


Tags: , , ,

|

Loading...
Related....
Videos...

Recent Business Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.