London’s retail property spree fuelled by overseas buyers

Despite economic uncertainties, overseas buyers are predicted to spark a record-breaking commercial property shopping spree in London.

Overseas buyers are predicted to fuel a record-breaking £2billion-plus shopping spree on London’s retail property despite the Brexit uncertainties.

So far, in the first half of the year, buyers have spent £1 billion on central London retail properties, bypassing the first-half average of £700 million, according to commercial property agents CBRE.

And in August alone, they anticipate a further £450 million worth of property to be sold.

Among the largest properties sold in the wake of the Brexit vote was the sale of Debenhams on Oxford Street to Stefan Persson, the chairman of H&M for £400 million.

The Zara at the end of Oxford Street was also bought by Hong Kong property tycoon Joseph Lau for 183 million.

And Sports Direct’s Mike Ashley reportedly spent £108 million on a new headquarters and flagship stores space for his new online based luxury brand, Flannels.

Head of UK retail at CBRE, Phil Cann stated that between £1.6 and £2 billion worth of retail property changes hands in central London per year, saying that he believes there will be a record number this year.

“I think that there is every chance this year. Given the amount of bidding activity we have seen, there is still a significant amount of equity tracking London retail and it shows buyers are still very happy with the London story.”

Buyers from overseas accounted for approximately two thirds of trading volumes in the first six months of the year, and this trend is only set to continue as the pound falls and London’s assets become more and more attractive to foreign buyers.



Melanie Luff

About the author

Mel wrote for all titles in the Dynamis stable including BusinessesForSale.com, FranchiseSales.com and PropertySales.com as well as other global industry publications.

@Be_TheBoss

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