Overseas companies own more than GBP39bn of City of London commercial property
Analysis from Hawker Beechcraft Corporation (HBC) has found that strong investment by overseas corporates in commercial property in the City of London has coincided with an increase in business flights into the capital.
Roughly GBP39bn worth of commercial property in the City is owned by foreign investors, with German businesses the biggest foreign investors, owning around 13.5 million square feet of office space at an estimated valuation of GBP12bn. This represents almost a third (31 per cent) of the total overseas investment in commercial property in the City.
One aspect of London which appeals to international investors is the large number of airports servicing the city. This appears to be a significant factor for German businesses, as over the first half of 2012 Germany saw the third highest volume of business flights into the UK. So far this year, flights from Germany have been landing in Britain at average intervals of less than every two hours. Furthermore, between 2009 and 2011, the number of business flights into the UK from Germany increased by 18.1 per cent.
Other well-represented regions in the City of London include the Middle East and Ireland, whose businesses own an estimated GBP4.5bn and GBP3bn of commercial property there respectively. Overall, a staggering 52 per cent of commercial properties in the City of London, representing 44 million square feet of office space, are owned by foreign investors.
“London remains one of the biggest and most influential financial capitals in the world and it is therefore no surprise to see that commercial properties in the City are still very much sought-after by overseas businesses,” says Sean McGeough, HBC president, Europe, Middle East, Africa and Asia Pacific. “Not only is London perfect for conducting business on a global scale, but it is also supported by a high number of business airports such as London City, Biggin Hill and Farnborough, allowing for travel into the heart of the city from continental Europe within a matter of hours.”
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