Hong Kong buyers make beeline for London assets, lured by stable rent, rule of law, cheap money
Hong Kong-based Tenacity recently bought a commercial property in the city for £271.4 million.
Stable rental income, the rule of law and cheaper money are the drivers of Hong Kong’s continuous demand in the London real estate, says a Hong Kong-based Tenacity, which recently bought a property in the city for £271.4 million (US$358 million).
While some investors have pulled back from the UK property market following the Brexit referendum last year, the company is confident in the long-term outlook of London.
“The uncertainties arising from Brexit will probably last for two to four years, but we eye on long-term prospect,” said Patrick Wong Tsu-an, chief executive of Tenacity.
The company bought 70 Gracechurch Street through a venture in August from Legal & General Investment Management for £271.4 million. The deal, providing a net initial yield of 4.4 per cent, is the investor’s first property acquisition in the UK.
“We are confident in the investment as it provides a long and accretive income stream from two strong covenants,” said Wong, who is the son of Dah Sing Bank’s founder and chairman David Wong Shou-yeh. Prior to establishing Tenacity International Limited, he had more than a decade’s experience in the US and in Asia.