Asian investors accounted for £1.7 bn (EUR 2.03 bn) worth of transactions in Central London’s office investment market during 2011, marking a 150% increase compared to the £668 mln recorded in 2010, according to latest figures issued from Jones Lang LaSalle.
Asian investors accounted for £1.7 bn (EUR 2.03 bn) worth of transactions in Central London’s office investment market during 2011, marking a 150% increase compared to the £668 mln recorded in 2010, according to latest figures issued from Jones Lang LaSalle.
Total investment volumes in the Central London office market reached £10.8 bn in 2011, with international buyers representing 60% of total investment volumes. Asian buyers accounted for 16% last year, up from 6% in 2010.
Asian investment into London more than doubled last year, said Alistair Meadows, Head of Jones Lang LaSalle’s International Capital Group, Asia Pacific. 'What has been evident is the emergence of "new" sources of Asian capital attracted to London ranging from pension funds like EPF & PNB from Malaysia to Ultra High Net Worth (UHNW) investors like Khoon Hong Kuok and Martua Sitorus who acquired Aviva Tower in the City of London for £288 mln.'
Meadows expects to see a diverse range of Asian investors being very active in London in 2012 and likely to account for over 20% of investment volumes by year end.
Earlier this month it emerged that a Malaysian government vehicle is poised to acquire three office assets in London from German open-ended fund manager Kanam for about £750 mln (EUR 895 mln). Permodalan Nasional Berhad, a EUR 47 bn unit trust manager that invests on behalf of Malaysia's indigenous Bumiputera people, is understood to have put the assets under offer. Barring any unforeseen circumstances, the transaction could be completed in a few weeks, reliable sources told PropertyEU.
