London to see $3.72 billion from Chinese investors
Updated: 2016-11-09 14:37
By Hu Yuanyuan(chinadaily.com.cn)
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A bus passes buildings with Big Ben in the background in London. [Photo/IC] |
Chinese institutional investors are expected to pour more than three billion pounds ($3.72 billion) into London this year, a record high despite rising uncertainty after Brexit, according to CBRE experts.
"For some ambitious Chinese investors, the Brexit, in fact, provides them a good opportunity to buy good assets in London at a more reasonable price," said Richard Zhang, head of China desk, EMEA of CBRE, an international real estate consultancy company.
By the end of May, Chinese institutions, including China Life, Fosun and Vanke, had invested 1.3 billion pounds in London in the first five months of the year.
"And there are three deals valued around 1.2 billion pounds going on right now. We expect there will probably be deals valued at 1 billion pounds finalised before Christmas," said Zhang.
The depreciation of the pound, more leeway to get a better value for money in deals both provides investors good investment opportunities right now, Zhang added.
For Yvonne Siew, head of Global Capital Markets of CBRE China, to secure a good deal in the long run, Chinese investors need to buy core assets with a good location and good tenants. For property development overseas, finding a good local partner can largely reduce potential risks.
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