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Top take-aways from EXPO REAL panel - International investors investing in the UK

Mike Sales

Today at EXPO REAL, Mike Sales (MD, Europe) joined GAW Capital and CPPIB on a panel to explore investment opportunities across the UK. The panel was moderated by Russell Handy, IP Real Estate.

The panel first focused on London, exploring where and what investments could yield the best opportunities for investors. Richard Kolb said that CPPIB continues to deploy capital across London. In particular, he pointed to a c.93,000 sq m mixed use project in Victoria. He also added that they were buying value-add offices of c.£50-£100m. However he pointed out that London is witnessing a ‘rental play’ at present, with vast differences visible across sub-markets. 

Despite recognising pockets of opportunity across the capital, Mike Sales pointed to caution over exit yields in some markets, for example, the city, where returns are not as lucrative as they once were.  

Christina Gaw, of GAW Capital, highlighted the significant flows from Asia that still consider London a safe ground for investment. In particular, she highlighted student housing and residential as attractive sectors to Asian investors.  

Next, the panel turned to the UK regions, highlighting certain areas and projects in turn. In particular, Mike Sales pointed to the opportunities in Edinburgh where TIAA Henderson Real Estate is currently developing a significant mixed use scheme – Edinburgh St James. Christina Gaw noted, however, that it may take cross-border capital a little more time before it gains the right comfort levels over the UK regional markets. 

All panellists agreed on one point: joint venture structuring is an increasing favourable way for investors to gain comfort levels required on sectors or regions that they are entering for the first time.

 

Disclaimer
For professional use only. Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services.

 

Mike Sales

Mike Sales

Head of TH Real Estate

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