Much has been written about Asian investors’ newfound love affair with London property, as high-profile acquisitions of major assets — the Lloyd’s building, Ram Brewery — have become a dime a dozen.
But now Asian investors have begun to move out into the U.K. regional cities, according to a new report from DLA Piper. As Investing in U.K. Core Cities notes, overseas ownership in the U.K.’s other cities has been increasing steadily.
In a statement about the report, Jeremy Liebster, registered foreign lawyer at DLA Piper in Hong Kong, notes:
“With a well-publicized flood of investment money from Malaysia, China, Hong Kong and Singapore into London commercial property, the lure of the U.K. capital to Asian investors is well established and shows no signs of waning. Sovereign wealth money and pensions funds have been joined by high net worth individuals, some of whom are increasingly teaming up with local developers. But London is not the only place of interest to Asian investors, who will often be familiar with the rest of the U.K. from business, university or family ties. With rental yields in London gradually falling to match similar lows in Hong Kong, Beijing and Singapore, it was always inevitable that interest in other areas within the U.K. would begin to increase.”
The report highlights investment opportunities in Birmingham, Edinburgh, Leeds, Liverpool, Manchester and Sheffield, as well as London.
It remains to be seen if the U.K. regional cities will pull investors away from the promise of London.
Loretta Clodfelter is production and copy editor with Institutional Real Estate, Inc.
