‘Cheesegrater’, ‘Walkie-Talkie’ deals make Hong Kong top buyers of London offices in 2017
But large overseas investment into London’s commercial buildings has brought more affordable cities such as Manchester and Birmingham into focus
Hong Kong investors pumped record amounts into London office deals in 2017, adding to the large volumes of international capital which are forcing property transactions out of the capital into the wider UK.
Transactions from Hong Kong accounted for over a third of total investment in London in 2017, and just under a half of all overseas investments, led by two large deals in first and third quarters, according to data from international property consultants CBRE.
In the first quarter, 42 per cent of total investment came from Hong Kong, while in the third quarter the city contributed nearly 60 per cent of the total inflow.
London has been a focal point for global investors since recovering from the financial crisis, said Chris Brett, head of international capital markets at CBRE UK. Led firstly by Canadian and German investors, Hong Kong joined the mix and has steadily increased its cash flow into the UK’s capital over the last three to five years.
Investment from the city boomed after the sterling weakened following the Brexit vote in June 2016.