Chinese investors poured nearly $4B into London CRE

Miami /
Feb.February 14, 2017 03:45 PM

From the New York website: Though commercial deals in London waned in Brexit’s wake, investors from China and Hong Kong purchased approximately $3.75 billion in the city’s real estate last year.

The yuan appreciated by 12 percent against the British pound since June, when the U.K. voted to leave the European Union, the Wall Street Journal reported. That, along with expected restrictions on outbound capital from China, has investors flocking to London.

The capitalization rate on offices in London’s West End hit 4.2 percent last year — a return that has other investors backing away from the market. But compared to Hong Kong, where the cap rate was 2.6 percent, such deals are attractive.

Meanwhile, Chinese investors are taking “a wait-and-see approach” when it comes to deals in the United States, Alistair Meadows, head of U.K. Capital Markets at JLL, told the Journal. New York City real estate has long been a go-to for foreign investors, but Donald Trump’s victory may shift some of that cash to the U.K. [WSJ] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Terranova’s Stephen Bittel with 93 Miracle Mile
Terranova plans retail-and-office project on Coral Gables’ Miracle Mile
Terranova plans retail-and-office project on Coral Gables’ Miracle Mile
Ytech's Yamal Yidios with 1500 Brickell Avenue
Ytech buys historic Brickell château, plans restoration
Ytech buys historic Brickell château, plans restoration
50 and 60 Northeast Third Street and 222 and 234 Northeast First Avenue (Google Maps)
Namdar pays $41M for downtown Miami apartment towers dev site
Namdar pays $41M for downtown Miami apartment towers dev site
Vladislav Doronin of OKO Group (Illustration by The Real Deal with Getty)
Vlad Doronin denied business in Russia. Court filings suggest otherwise
Vlad Doronin denied business in Russia. Court filings suggest otherwise
From left: Edgardo Defortuna, Ana Gomez, Alicia Cervera Lamadrid, and Craig Studnicky (LinkedIn, Cervera, iStock)
“Get your money out now”: Miami brokers target Colombian buyers after leftist’s election
“Get your money out now”: Miami brokers target Colombian buyers after leftist’s election
Hollywood Locations' Christopher Ursitti and 1400 Northwest 31st Avenue (Hollywood Locations, Google Maps)
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Movie studio complex may rise on former incinerator site in Fort Lauderdale
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
Vlad Doronin (Getty / Photo illustration by Priyanka Modi)
Developer Vlad Doronin distances himself from Russia’s war on Ukraine
Developer Vlad Doronin distances himself from Russia’s war on Ukraine
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...