UK - Institutional investors continued the exodus out of the UK domestic market in the first half of 2007, and became net sellers with divestments worth €8.7bn.

Figures to be published by Jones Lang Lasalle on pan-European investment reveal UK investors have upped their acquisition activity in continental Europe over the first half of 2007 to €11.8bn, up from €6.8bn in the same period last year.

Their primary focus has been on the mature markets of Germany, the Netherlands and France, which accounted for more than 70% of the UK capital invested across the continent.

Germany was the single-largest destination market for UK investors' real estate spending, with €4.7bn spent, up from €3.7bn in the first half of 2006. The second-largest destination market, the Netherlands, accounted for half that amount, while France and Sweden trailed with €1.5bn and under €1bn respectively.

Overall, sales by UK investors totalled €3.6bn, reflecting net divestment of €8.2bn.

Mark Jones, director of investment advisory at Jones Lang Lasalle, told IPE Real Estate he expected the outward trend to continue, with UK investors shifting investment to emerging markets in search of performance.

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