MIPIM UK: Chinese investors appear in force

Chinese investors were out in force at this year’s MIPIM UK following hot on the heels of the Chinese president’s state visit to the UK this week.

And it’s not just London they’re interested in, according to James Muir, head of UK and Ireland at real estate investment company Patrizia Immobilien. ‘With significant infrastructure investment going on around the country, such as HS2, Crossrail, underground upgrades, new tram systems and roads, all these are making regional development schemes much more viable and attractive than before.’

Watch PropertyEU's interview with Patrizia's James Muir during MIPIM UK

Ten years ago, the bulk of the investment was going into London, said Muir, but the phrase coined by the UK’s chancellor, George Osborne ‘The Northern Powerhouse’, is now a reality. It was apparent at MIPIM UK that many formerly disparate northern cities have discovered the power of working together to achieve the common goal of seizing the initiative, and investment, from the UK’s wealthy South East.

Muir also cited the growing number of university students from overseas who want to remain close to the towns, up and down the UK, where they gained their degree.

‘The UK population is growing. Many of those staying are highly qualified, and it’s no longer just growing in the South East,’ he said.

Patrizia has always invested in the UK regions, as well as in London, and has a total of £1.5 bn invested across the UK.

Manchester
One of the sites Patrizia showcased at MIPIM UK was its First Street site in Manchester, purchased in May 2015. The Grade A office building already has high-profile tenants including Ford and Auto Trader.

This 8-hectare site has the capacity for up to 93,000 m2 of office space and around 600 new apartments, which the company will develop as build-to-let, marking its first foray into the growing UK private rental sector.

What the country now has, says Muir, is a combination attractive to investors, dynamic local governments and ongoing infrastructure investment.

‘Good placemaking has a massive impact on an area’s attractiveness to those looking to live and work in central urban locations,’ he said.

VIDEO
James Muir of Patrizia takes about investment opportunities in UK regional cities