Investment in London offices is soaring thanks to a wave of investment from Asian investors.
A host of nations including South Korea, Malaysia, Singapore and China have pushed a huge amount of money into the area – returning the level of investment to something not seen since the beginning of the financial crisis.
In total, a whooping Â£14.7 billion has been invested into London office space this year alone.Â The figures compiled by real estate research firm, Real Capital Analytics, also show that London is number one in the global office market, compared to a figure of Â£9.7 billion in New York and around Â£8.5 billion in Paris.
Popular areas for investment include the City which has seen around Â£3.5 billion worth of Asian investment since 2010, Docklands and West End.
The investors see London as a much more stable investment as they look for higher yields in comparison to the relatively slow grow in the Asian-Pacific area. Other factors include London’s reputation as a safe haven and returns that beat the initial costs of financing.
The most significant purchase to date was by a Malaysian led consortium. They put forward a staggering Â£400 million for the Battersea power station site back in September – beating off competition from the likes of Chelsea FC owner, Roman Abramovich.
The Malaysian group, composed of property developers SP Setia, Sime Darby and Employees Provident Fund have suggested that the site will be turned into a village of offices, shopping areas and apartments – at a cost of around Â£8 billion
The Japanese billionaire, Akira Mori, has also made suggestions he will be investing as much as Â¥100 billion (Â£760 million) into London properties, describing the current climate as a perfect time to invest.
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