INDUSTRY NEWS

Sales of London offices, shops and hotels highest since 2007

New research has shown that London property deals have surged to a value on a par with those before the financial crisis began.

In particular, demand from Asian governments has seen the market continue to swell to the strongest annual performance since 2007.

According to research from the real estate advisory group Cushman & Wakefield, the desire for London offices, shops and hotels has seen sales reach £13.6bn – a rise of 25% on last year.

In total, Asian investors have accounted for 45% of property deals in London this year. In fact since 2010, a sum of money to the tune of £3.5bn has been spent by Asian investors keen to acquire property in popular areas including the City, Docklands and West End.

Nations including South Korea, Malaysia and China have played a particularly significant role in this resurgence.

The Financial Times recently reported that sources close to matter had told them that a trio of Asian investors from those nations were looking to buy the £800m Chiswick Park business park from Blackstone.

Prior to this news, investment from China and Malaysia in particular had already been prominent in big London property deals this year.

In November, the China Investment Corporation splashed out £245m to acquire Deutsche Bank’s City of London headquarters. Prior to this, a Malaysian consortium agreed to the £400m purchase of Battersea Power Station in September – outbidding the likes of Roman Abramovich – the Russian billionaire owner of Chelsea FC.

The huge investment in the London property market by Asian and other global investors has seen the UK capital trump the likes of Paris and New York as number one in the global office market.

News bought to you from DeVono Cresa, the award-winning commercial property advisers, specialising in Central London office, retail and leisure space.