Fund managers, developers, and property agents are beating a path to Asia to capitalise on the growing demand from high-net-worth investors in Asia for London property investment opportunities.
Cordea Savills, the fund management arm of Britain-based property consultancy Savills, is launching a fund that will invest in residential properties in prime central London. It believes the fund will be well supported by Asian investors.
The Prime London Residential Development Fund, which aims to raise as much as GBP200 million (HK$2.4 billion) in equity, is being marketed to rich individuals who can afford its minimum subscription amount of GBP200,000 per investor.
It is being launched at a time when interest in the London property market has been growing amongst Asian investors, according to Patrick Carr, director of Cordea Savills' investment desk.
Carr said Hong Kong and mainland residents had turned their attention to investment opportunities in Britain, and London in particular, because of the relative strength of both the yuan and the Hong Kong dollar, historically high property prices in their own markets, curbs on speculative investments in China, and the uncertain economic outlook.
In London, luxury property developers are unable to secure financing at the same level as before the global financial crisis in 2008 and are looking elsewhere for funding.