Overseas investors accounted for over 60% of London office investment in the third quarter of 2012, according to new research by BNP Paribas Real Estate. During the third quarter, the real estate adviser tracked some £2.58 bn (EUR 3.2 bn) of office deals in the UK capital.

Overseas investors accounted for over 60% of London office investment in the third quarter of 2012, according to new research by BNP Paribas Real Estate. During the third quarter, the real estate adviser tracked some £2.58 bn (EUR 3.2 bn) of office deals in the UK capital.

The research revealed that as much as 86% of investment into The City (£1.36 bn) came from overseas investors during the third quarter of the year. In addition, 44% of investment into the West End (£950 mln) was carried out by foreign investors. The Midtown area of London attracted £270 mln of investment.

'London is still perceived as a safe haven and although there is subdued occupier activity, the restriction in the supply pipeline means there will be rental growth,' said Andrew Cruickshank, international investment director at BNP Paribas Real Estate. 'This, coupled with London’s perception as a safe haven, makes it very attractive to overseas investors looking for secure assets.'

Major deals in Q3 include a Malaysian consortium's purchase of Battersea Power Station in central London for £400 mln (EUR 505 mln). The consortium comprises listed Malaysian property developer SP Setia, conglomerate Sime Darby and the Employees' Pension Fund of Malaysia.