Asian investors eye UK property post-Brexit

Asian investors eye UK property post-Brexit

A 14% fall in the value of sterling has seen a number of Asian investors move to secure UK property investments while assets are below market value.

Summary:

  • Thai property firms become the latest overseas party keen to secure UK real estate
  • Chinese investors have already completed eight major deals for UK property following Brexit
  • German investors are keen to acquire assets in the quickly growing Manchester market

Asian property firms are taking advantage of the post-Brexit currency window to secure UK property investments.

A number of Thai firms want to invest in UK real estate while prices are below market value – sterling has depreciated 14% against the baht, from 53.65 per pound on January 4 to 45.96 earlier this week (August 23rd).

Last month, reports in various Chinese newspapers suggested there had already been eight major Chinese investments in the UK since the Brexit vote.

Henry Chin, Head of Research at CBRE Asia Pacific, said: “We have seen an increase in inbound inquiries since the Brexit vote, especially from Asian high-net-worth individuals and family offices, who still see London as a safe destination for property investments.”

Phanom Kanjanathiemthao, Knight Frank Thailand’s Managing Director, explained the currency window means it’s a great time to invest in London or elsewhere in the UK.

Indeed, earlier this week Manchester was highlighted as a major upcoming investment target. German bank Deka’s spent £164 million acquiring property in the city. It’s the first wave of European investment that could total hundreds of millions of pounds over the coming months.

Manchester is one of the UK’s fastest growing cities and has a structural undersupply of property to house its rapidly increasing population and workforce. Mark Rawstron, Regional Director at Bilfinger GVA, who advised on the Deka deal, stressed these qualities.

He explained: “When a German investor like Deka says they regard Manchester as the strongest market outside London they are not saying it to flatter us – they put it in their statement to German investors because it’s true.”

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