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Bonanza in West End

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  • Bonanza in West End

    Bonanza in West End

    10.10.05

    London - Investors, including Abu Dhabi’s royal family, may spend a record 5 billion ($12.65 billion) this year on commercial property in London’s West End, as rents rise in the world’s most expensive office location, a real estate broker says.

    Property investors paid 1.7 billion for offices and shops in the third quarter, bringing the total for the first nine months of the year to 4.1 billion, data from property agents Cushman & Wakefield Healey & Baker shows.

    That matches the amount spent in all of last year.

    "Investment should reach 5 billion or more by the end of the year," said partner Andrew Thomas.

    Property companies, pension funds and overseas buyers are purchasing UK real estate, the country’s only asset class to make money for investors in every year since 1992.

    Total returns for West End property investments were likely to be about 19 per cent this year, similar to last year and double forecasts at the start of this year, said Thomas.

    The West End includes Oxford St, London’s main shopping centre, in the north and borders the Thames by Parliament to the south.

    Prime office rental costs at the end of last year were 50 per cent higher than in central Tokyo, the world’s second most expensive district, and triple what companies pay in Manhattan, said estate agent Knight Frank LLP.

    In Mayfair, the Abu Dhabi royal family spent more than 400 million in a week in July on three properties, including 280 million for an office block in Curzon St.

    West End investment of 5 billion this year would be equivalent to about 7 per cent of the 100 billion that investors spent on real estate across the whole of Europe last year. Agents expect a similar total this year.

    News source:
    http://www.nzherald.co.nz/
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx
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