Goldman Sachs has recently completed a 25-year sale and leaseback of their London office, demonstrating a commitment to their London and European operations.
In his interview with talkRADIO, John Slade, Non-Executive Chairman of the Real Estate Advisory Group at Duff & Phelps says the lease also demonstrates a trend he has witnessed all year. John states the lease signifies, “a tremendous vote of confidence in London as a business centre – Goldman Sachs being located here long-term and an international investor buying it.”
The trend is perpetuated by investors both inside and outside of the EU. Years ago, it was not common to see overseas investors in London, whereas now, they are investing all over Europe and have a global portfolio, but they treat London as a stable place to safeguard their money.
Although Brexit has weakened the pound – which attracts investors because they can buy cheaper against their own currency – it hasn’t deterred their belief in London’s future. While the post-Brexit future looks unclear, John confirms, “We as investors take a view beyond that and saying, ‘whatever happens there, London will have that strength as an investment center’."
When John meets international investors, he says they look for longevity, security for their money, quality tenants and the longevity of those tenants, well-built buildings that tenants will like, all while being conscious of simple economics – “Supply is not that high of office buildings, and there is still a big demand,” states John.
Amongst the fear-mongering headlines in the wake of Brexit "we're just getting on with it,” says John.
Through the short-term turbulence politics are causing, “The business world is strong, and [investors] can see where the capital wants to be,” confirms John, “Big investors are looking beyond that and still see the UK as stable with or without Europe.”
Listen to the full interview below.
Real Estate Advisory Group
Leading provider of real estate valuation and consulting for investments and transactions.Real Estate Advisory Group
Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.Valuation Advisory