Rumours of the demise of the capital's foreign investor market are greatly exaggerated, it seems, after new research showed Asian investors have made up close to half of the value of the largest property deals since the Brexit vote.
The research, by construction consultants McBains Cooper, analysed the 41 deals worth £100m or more completed since the Brexit vote, and found Asian buyers had ploughed in £5.3bn of the £10.9bn value of the deals.
Of the 17 buyers who have sealed £100m-plus deals, 13 were from Hong Kong, two were from Singapore and two were from China. What's more, nearly half of the deals analysed took place within six months of the referendum.
Of the 41 transactions analysed, two broke records: the Cheesegrater, which was sold by Oxford Properties and British Land to Hong Kong-listed CC Land for £1.15bn in March, and the Walkie Talkie, which was sold to herbal medicine maker LKK Health Products Group, which is also based in Hong Kong, for just under £1.3bn in July.
Providing further proof international investors are unperturbed by Brexit, German investors made up the second largest group, with six deals making up £1.9bn.
“This is an important vote of confidence from International investors in the UK property market as we approach EU withdrawal," said Gareth Hird, commercial director at McBains Cooper.
“It shows that the UK is still an attractive proposition for commercial property – prime assets compare favorably with equivalents in Hong Kong and New York and the weakness of sterling makes the UK market more attractive.”