BRITISH PROPERTY FEDERATION PRESS RELEASE EMBARGOED UNTIL 00:01 THURS 14TH MARCH
MIPIM 2013: London still the 'preferred destination' for UK foreign investment
(Virtual Press Office) -- London continues to fly the flag for the UK property industry as foreign investors remain attracted to the capital's safe haven status in an uncertain global economic climate, a MIPIM event heard today.
A recent Development Securities commissioned report showed foreign ownership of the City had reached 52% of total floorspace, up from 8% in 1980 and 45% at the time of the last report in 2006.
However, research from the Property Industry Alliance shows overseas investors are set to overtake UK institutions as the single largest owner of UK commercial property, with a 106% market increase since 2003, indicating that while the capital's office market remains the UK's magnet for real estate investment, there is life in the regions for the right opportunity.
Alistair Meadows - Director, International Capital Group Asia Pacific, Jones Lang LaSalle: "We have witnessed the significant uplift in Asian investment into London offices from 8% of total commercial investment volumes in 2010 to nearly 30% in 2012. London's attractiveness as an investment destination for new Asian institutional and private investors continues to ensure its number one global ranking, and that it remains the preferred destination for international capital.
"Asian interest outside Central London is sporadic and opportunity-led as witnessed by the recent One Angel Square transaction in Manchester. Unless the opportunity is compelling in terms of income security and price, it continues to be challenging to attract Asian capital to venture out of London"
Jessica Hardman, Head of Transaction UK and Ireland, Deutsche Alternative Asset Management, said: "Investment pricing in London continues to be competitive as the demand from international investors remains strong. Whilst there are selective UK regional opportunities that may attract international capital the volumes remain very limited outside London. More likely, international investors will explore prime assets in other European or Global markets before investing in the UK regions."
Richard Kolb, Director of Real Estate Investments, Canada Pension Plan Investment Board, said: "The London office sector is a prime investment market for CPPIB. We like the scale and liquidity of the City, the growth in the West End and the high quality of partners we can find in the market."
The 'London Calling' event will take place between 09:00 – 11:00, Thursday 14 March, JLL marquee, Hotel Gray d'Albion Private Beach, La Croisette, Cannes
Patrick Clift – 020 7802 0128 / Paul Sweeney – 07841 732 194