Following the Chinese President’s state visit in October last year, the UK commercial property market has been deemed an investment “safe haven”.
£560.3m of Chinese transactions have already been made in the London market since the beginning of the year to 29th February.
Key investments were carried out by the Chinese state-owned real estate investor, Poly Real Estate, which completed its first purchase in London in January with the £145m acquisition of Ludgate West, 5 Fleet Place, and China Overseas Land and Investment’s purchase of the Helicon Building, South Place, in February, also for £145m.
Rasheed Hassan, Head of Savills Cross Border Investment, commented: “Although there is a significant amount of capital chasing London real estate, with a finite level of supply, there are still a number of assets available which offer an attractive yield profile.
“Long-term income streams, redevelopment opportunities and mixed-used schemes entering the market provide a variety of return profiles which in turn attract an array of investors.
“In addition, the profile of the investors we’re seeing enter the market includes Chinese developers who are seeking higher returning development opportunities, targeting mixed-use and residential led schemes, rather than core assets within London.”
Last year, Chinese President Xi Jinping visited Manchester as part of his state visit.
Prime Minister David Cameron said the north of England would create new partnerships with China to unlock the potential of the northern powerhouse.
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