Sovereign funds keep pouring into London’s real estate assets

Winchester House, home to Deutsche Bank, is owned by China’s sovereign wealth fund
Winchester House, home to Deutsche Bank, is owned by China’s sovereign wealth fund

SOVEREIGN wealth funds are forecast to reach a record $5.6 trillion in assets this year, with Britain revealed as the second most popular destination for investment, according to research published yesterday.

TheCityUK’s Sovereign Wealth Funds 2013 report revealed that total assets held by these funds increased for the fourth year running in 2012 to $5.2 trillion and predicts these will grow a further $400bn this year.

Investment into global property jumped by 30 per cent last year to $10bn as sovereign wealth funds sought to diversify their portfolios.

Chris Cummings, chief executive of TheCityUK, commented: “The increased investment in property by SWFs is a boon for London, which is a prime real estate location and seen as a safe haven market for investors.”

Recent deals include China Investment Corporation’s £245m purchase of Winchester House, the London base of Deutsche Bank.

The UK is the second largest destination for these funds, accounting for one sixth of global investments since 2005, second only to the US, Cummings added.

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