London and its submarkets continue to draw Asian investors
In yet another London acquisition by an Asia-based investor, Singapore-based The Shaw Foundation has paid £270 million (US$376 million) for the office building located at 88 Wood St in the City of London submarket. The seller was Malaysia’s second-largest pension fund, Kumpulan Wang Persaraan (KWAP), which acquired the 18-storey office tower for £215 million ($303.6 million) in 2013.
In a 2014 deal, KWAP purchased the Chimes Shopping Centre in London for £202.3 million (US$293.1 million).
Buyers from China and Hong Kong acquired £3.0 billion (US$4.35 billion) of London commercial property in 2015, compared with £2.7 billion (US$3.90 billion) the previous year, according to CBRE. Sovereign wealth fund acquisitions of UK trophy assets have gathered pace over the past couple of years.
London remains the destination of choice for first-time Asian investors because of the market’s simple tax system and high liquidity, states CBRE. Taipei-based Shin Kong Life