30% Of Middle Eastern Investment Spent Outside Central London Since Brexit Vote
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Thirty percent of all Middle Eastern capital directed at the UK since the EU referendum has been deployed outside central London with £271.8M of the total £909.6M invested in the UK regions, research from Savills found. Comparatively, only 19% of transactions by Asian investors post-Brexit have taken place in the UK’s regional commercial property market.
Savills pegs the total investment from the Middle East at £1.4B in 2016 year-to-date, across 25 transactions.
Middle Eastern investors continue to chase future-focused income streams with internationally recognised brands with key deals including: Palmer Capital and SEDCO Capital purchasing Waterside House in Bracknell for £35.2M; Rasmala acquiring Abbvie House on Vanwall Business Park, Berkshire, for £24.5M; and Kuwait’s Global Investment purchasing the NHS Scottish and UK/European headquarters offices at the Gyle Business Park in Edinburgh and 3M SF in Bracknell for £200M. Savills says Middle Eastern investors now have an 8% market share of the UK’s commercial property market, and a 12% share of investment in Central London.
Savills’ director of cross-border investment Hassan Farran said Middle Eastern investors continue to view the wider UK as an attractive investment destination because of the legal system, landlord-friendly regulations, standardised market, time zone and culture. Farran also said the weak pound is attractive to investors who might have been sitting on the sidelines and waiting for the right opportunity to deploy capital.
Looking forward, Savills expects UK commercial real estate will continue to attract Middle Eastern investors.