commercial property lambert smith hampton

Viewpoint - 07/01/2014

Prime London sites remain a major draw for international property investors

The purchase of Chiswick Park in west London by China Investment Corporation and Chinese state-owned Greenland Group’s acquisition of the Ram Brewery in Wandsworth demonstrate that prime London sites remain a major draw for large international investors.

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The surge of overseas investment in London shows no sign of abating.  Despite yield compression and rising values, prime London sites remain highly attractive because of the capital’s established position in the top tier of global cities.

The emergence of internationally-financed residential projects

International investors have traditionally focused on commercial property, but overseas developers are now involved in many of the most high profile residential development sites in London.  The Ram Brewery deal is the latest in a growing list of internationally-financed residential projects that also includes the Battersea Power Station development, which is backed by a Malaysian consortium, the redevelopment of Television Centre, which is being financed by Canadian and Japanese investors, and the redevelopment of the Athletes’ Village in the Olympic Park, where Qatari Diar is playing a major role.”

Chiswick Park a trophy asset

Although Chiswick Park isn’t located in the prime Central London markets, its international tenant mix, high profile and proximity to Heathrow make it a trophy asset.

Overseas investors accounted for half of all commercial property transactions in London during the first three quarters of 2013, and there is little sign that their interest will wane in 2014.

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