The uncertainties surrounding Brexit are having very little impact on the London property market, according to real estate investor Starwood European Finance.
Starwood, an indirect subsidiary of Starwood Capital, said the 12-month rolling take-up of London office space was at its highest level in July since September 2015, at 7.6 million square feet.
The company, which has almost a quarter of its £430 million loan portfolio attached to assets in Ireland, said although Brexit negotiations are making slow progress, the elongated uncertainties of Brexit are less evident in the real estate markets.
“Appetite for London office investment is unabated and while Chinese investors have pulled back from new acquisitions, there are many other sources of capital attracted to the London investment market illustrated through recent transactions,” it said.
The firm’s quarterly report, published in the Belfast Telegraph, pointed to Singapore’s Ho Bee Land buying Ropemaker Place for £650 million, Hong Kong tycoon Victor Li’s purchase of 5 Broadgate for £1 billion and Korean investors buying 20 Old Bailey and Cannon Street House.
Starwood European Finance bankrolled the development of an international school in Dublin that will be operated by Hong Kong-based Nord Anglia. Aimed at children of multinational executives, it is due to open this September in a former Microsoft building.
The school will be the most expensive in the country, with annual fees starting at just under €16,000 and rising to €24,000.
Starwood has also backed projects in Ireland including student accommodation schemes, a hotel project and residential units.