European investors returning to London commercial property

Thu, 27 Apr 2017 | COMMERCIAL PROPERTY

The run-up to the EU referendum saw European investors give London’s commercial property market a wide berth - but they are on their way back, ploughing more than £1 billion into the market this year so far.

A weak pound that has seen prices drop and a degree of certainty over property prices following the announcement of a snap election are working to make the UK a decent prospect for buyers, analysts say.

Savills said European investors have put £1.7 billion into central London real estate so far this year, accounting for 31 per cent of the market. That activity is double that of the same period in 2016, when investors spent £824 million on London commercial property.

Felix Rabeneck, director in the Savills’ central London investment team, said investors like London’s attractiveness as an “international marketplace” and a “safe haven” for capital.

“In spite of headwinds generated by Britain’s decision to leave the EU last year, the UK continues to look stable to overseas investors and comparatively more attractive than many other markets,” Rabeneck said.

“This, coupled with a fall in the value of Sterling, has led to a return in appetite from European investors.”

Speaking to Bloomberg, David Hutchings, head of European strategy at Cushman & Wakefield, said the snap election has stabilised, not upset, investor confidence.

“If anything, the snap election call in the UK decreases uncertainty regarding property values in London,” he said.

“If, as expected, May comes out stronger and in a better position to negotiate with the EU, our Brexit will be softer.”

Key deals so far this year include KanAm’s purchase of Evershed’s London offices at 1 Wood Street for £179 million, a consortium of institutional investors who acquired Olympia London for around £229 million and Deka Immobilien’s purchase of Cannon Place, EC4 for £485 million.


Share this article



Latest Businesses for Sale

Social Infrastructure Advisor
UK Wide

Provides strategic advice, infrastructure project scoping, feasibility work and brokerage services to clients in the public and private sectors. Clients include central and local Government bodies, charities and property developers / owners. Offers i...

Asking Price: Offers Invited
Turnover: £824,000

LEASEHOLD


Provider of Plant, Machinery & Tool Hire & Sales
North West, UK

Provides an extensive selection of products from leading brands, all of which are maintained to a high standard Knowledgeable and long-standing workforce in place, benefiting from extensive experience in the sector. Offers invited.

Asking Price: Offers Invited
Turnover: £820,000

LEASEHOLD


Third-Party Logistics Provider & Mailing House
South East, UK

A specialist third-party mailing house and fulfilment provider,utilising innovative technology and a network of couriers to offer an agile and reliable service.Services offered include order fulfilment and processing, courier services, printing, poly...

Asking Price: Offers Invited
Turnover: £10,200,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
21
 
Jan
 

MBO at Newcastle market research company | MBO/MBI

Newcastle-based market research company Explain Market Resea...

 
20
 
Jan
 

Target Healthcare embarks on acquisition spree | BUSINESS SALE

Target Healthcare has completed the acquisitions of a develo...

 
17
 
Jan
 

Sample book and shade card manufacturer acquired from administration | BUSINESS SALE

The business and assets of Yorkshire-based display products ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
27
 
Mar
 

Yorkshire vineyard up for sale | BUSINESS SALE

An award-winning vineyard in Yorkshire has been brought to m...

 
12
 
Oct
 

Shopping centre in Northern Ireland for sale at £18m | BUSINESS SALE

Bow Street Mall in Lisburn, one of Northern Ireland's b...

 
15
 
Jun
 

Cumbria hotel on sale for an undisclosed price | COMMERCIAL PROPERTY

A Georgian hotel from the 19th century has been put on the m...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources