In the Global Cities Report from the Investment Property Databank (IPD), Michael Stancombe, co-chairman of global real estate at Anglo-US firm Hogan Lovells, says that investors from outside the UK are driving instructions around the purchasing of prime property.
Stability
‘I don't see any real growth in office take up from the legal sector in the global cities in which the truly international firms operate. We are likely to see quite a prolonged period of stability,’ said Mr Stancombe. ‘Obviously some firms will have to relocate as a result of combinations or outdated/poorly configured space, but I believe that most firms will look at doing deals on existing space rather than incurring the capital costs associated with relocation.
‘In terms of deal flow, we have seen huge levels of interest from global investors looking to invest capital in central London offices. The main driver appears to be preservation of capital combined with London's safe haven jurisdiction. It is gratifying that the strength of the underlying legal system is recognised in this equation.’
Phil Tily, managing director of IPD, said: ‘London’s transparency and liquidity have cemented its prime location status for international money, despite the slowdown affecting the rest of the UK. Private equity investors and cash-rich buyers have kept pressure on prices and the slowdown in Europe has reinforced London’s position as the prime European destination for investment.’
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