For tech giants and Asian investors, it’s business as usual in post-Brexit London

Hugh Dixon says the city’s strength as a financial and real estate hub runs deep. Despite some initial jitters right after the UK vote last summer to leave the EU, investors have not abandoned London as feared

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London is seeing strong investment and remains the focus for major companies. Illustration: Craig Stephens

Published: 12:34pm, 10 Sep 2017Updated: 4:52pm, 5 Mar 2018

The possible financial and business exodus in London following the Brexit vote last summer has yet to materialise. In fact, the opposite is happening. Key corporations, tech companies, and some banks have all been increasing their presence in the UK capital. Relocating key staff members and acquiring new commercial premises to expand existing business seems to be the focus since the Brexit vote.

One of the biggest votes of confidence has been Google’s decision to stick to its plans to build a new headquarters in London and increase its workforce by 3,000, attracting new talent from around the world. Google’s choice of London for growth places the city in pole position to be the global leader in digital technology.

However, this tech giant isn’t the only one expanding its footprint, with Amazon following suit by taking 600,000 sq ft of new office space to house a research and development centre. Additionally, Facebook is on the way to expanding its workforce by 50 per cent and Apple is reportedly taking 500,000 sq ft of office space in the newly developed Battersea Power Station.

Watch: A new Apple campus at Battersea Power Station

The Brexit vote hit London’s start-ups and new technology companies hard. In the months afterwards, fundraising dramatically fell due to economic instability and lack of confidence.

Hong Kong investors have also been leading the way when it comes to London commercial real estate

In fact, it was reported that the three months following the vote were the worst ever recorded for fundraising. Nevertheless, if you fast forward 10 to 12 months, there has been a shift in direction and a clear recovery. These start-ups have looked to Asia for investment, allowing the angels to take advantage of the weak British currency.

Hong Kong and Singapore stepped up and have played a vital role in the survival and expansion of UK tech companies. Undoubtedly, there is a cloud over the UK start-up scene, as access to EU talent may become difficult in the future.

Nevertheless, the strong UK education system and government support of start-ups should be able fill the gap, should this benefit disappear.

Hong Kong investors have also been leading the way when it comes to London commercial real estate, being the most active in the first half of this year. Despite the vote to leave the EU, investor demand has remained strong. This has mainly been propped up by the flow of investment from mainland China and Hong Kong.

A Lee Kum Kee stall does roaring business on the last day of the Hong Kong Brands and Products Expo at Victoria Park in January this year. The food company broke price records for the acquisition of London’s “Walkie Talkie” building, after paying £1.3 billion for it. Photo: David Wong

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