London: BNP Paribas Real Estate
Investing in London Guide 2017
London remains the leading global city in which to do business.
The city’s world-class transport links, financial services pedigree and position as Europe’s fastest-growing technology hub means ever more global capital flows into London, a large proportion of which into real estate. Central London commercial property investment topped £16bn in 2016, with two-thirds of this money coming from outside the UK.
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The last 12 months have seen some of London’s trophy assets change hands. The sale of the The Leadenhall Building, or Cheesegrater, to Hong Kong-listed CC Land for £1.15bn; Deka Immobilien’s £510m purchase of Cannon Place in the City of London; and the £246m acquisition of 7 & 8 St James’s Square, on which BNP Paribas Real Estate advised, demonstrate the appetite for large lot sizes, particularly from overseas.
Demand for London’s biggest, most high-profile buildings remains strong, as it does in its complementary European markets of Paris and the major German cities. We also see a continued appetite for smaller investment opportunities across all assets – activity which also helps drive the market.
The emerging submarkets highlighted in this guide in 2016 have planted themselves firmly on the map – while investment in transport infrastructure continues to open up new regeneration opportunities.
BNP Paribas Real Estate has become a force to be reckoned with in London: our investment experts delivered over £3.1bn of deals for our clients, ranging from sub-£20m lots to £300m assets, and negotiated on 10m sq ft of commercial space in the UK in the last 12 months.
We absolutely believe in London as a real estate centre: we are expert advisers in London and that is why we’ve produced this guide.
The guide aims to help overseas investors understand the London market and what changes may be in store going forwards. Our experts can advise you on entry to the London market, asset selection, asset management and property management so that your property strategy is in safe hands and your assets have the best chance of rising in value. We can also consider your debt position if gearing is required.
Throughout this document, our experts will guide you through the different makeup of the London submarkets, all you need to know about London, examples of transactional deals we have done with overseas investors, and of course, where the next opportunities are coming from. We have also teamed up with some of the best UK legal minds at Nabarro to bring you a clear understanding of tax and legal terms. We house a dedicated research team of experts who leverage on the wider BNP Paribas Group to provide market intelligence and forecasting to our clients and business lines. This team has provided the stats and market context running through this guide.
Lastly a message to investors: it is increasingly important in this fast-paced London market to be ready to move quickly when advisers bring real estate opportunities to you. If you can make a quick decision and trust your advisers, you are more likely to be a winner in this market. With all eyes on London, speed can make the difference.
BNP Paribas Real Estate is the real estate adviser for a changing world.
Download the Investing in London Guide now.
For more information please do not hesitate to contact us.