German property funds target Britain
Sunday 05 January 1997
German property funds accounted for nearly pounds 1bn of purchases in 1995 and 1996, including such landmarks as the Lloyd's building in London for pounds 180m and the St Enoch shopping centre in Glasgow, also purchased by DESPA, for pounds 159m.
"There is still a lot of confidence in the investment market, and I am expecting German funds to be competing for some of this year's largest deals," said Angus McIntosh of property consultants Richard Ellis.
Property experts believe that the funds have now got a good base of high quality properties, mostly in London, and will seek to branch out into more regional retail and office developments.
The foray into UK property was originally a safety-valve measure to stop the cash element within the funds from rising above the limit imposed by their articles of association. As a result Germany has displaced both Japan and Sweden as the biggest foreign investor in UK property.
"These German property funds are still awash with liquidity, and their home market still does not look as good as the UK market," said David Basra of DTZ Debenham Thorpe. "With the good quality base they have got, the natural thing to do would be to expand their presence here in retail and venture further away from large cities."
Mr Basra added that the improving market would see more sellers come out of the woodwork, and investments in high quality buildings could still reap returns of more than 10 per cent in rent and capital appreciation, "which is respectable in a low-inflation environment".
Geoffrey Macnab reviews American Hustle, also starring Christian Bale and Bradley Cooper
Dennis Rodman will coach the North Korea basketball team
Jennifer Lawrence: 'It should be illegal to call someone fat on TV'
Ian Watkins: Police probed over earlier allegations as paedophile Lostprophets singer sentenced to 35 years for child sex offences
Iain Duncan Smith leaves Commons food banks debate early
Paul Walker death caused by speed alone
Devyani Khobragade: India-US row escalates over arrest of diplomat in New York
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Christmas comes early: Justin Bieber is 'retiring from music'
- 4 Iain Duncan Smith leaves Commons food banks debate early
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£500 - £550 per day: Cornwallis Elt : Business Analyst Target Operating Mod...
£500 - £680 per day: Harrington Starr: Murex Business Analyst - 1000 CHF per d...
£60000 - £75000 per annum + Bonus and Benefits: Harrington Starr: A leading au...
£25000 - £32000 per annum: Harrington Starr: Junior Business Analyst - Banking...