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Rising London Rents Lure Soveriegn Wealth Funds

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London’s commercial property market will probably draw the most investment for the second consecutive year as prospects of rising rental income attract cash from as far afield as Hong Kong, Qatar and Canada.
Sales of existing commercial property in the U.K. capital totaled $13.9 billion in the first nine months, more than in any other city, according to Real Capital Analytics Inc. Some of the biggest deals of the year were announced in the final quarter.
“There’s a massive surplus of investment capital looking for a home, and the one thing in common is a desire for yield,” Dan Fasulo, RCA’s managing director, said in an interview. “A core London office property at a 5 or 6 percent yield looks fantastic against the alternatives.”
Cash-rich pension funds, sovereign wealth funds, insurers and wealthy individuals bought shops, offices and
even luxury homes in central London
as low interest rates and concern that the global economy will deteriorate made other investments riskier and less appealing. The city also ranked first in 2009 with sales of $16.8 billion, New York-based RCA said.
In the past two months, Norway’s sovereign wealth fund agreed to pay 448 million pounds ($692 million) for a stake in Regent Street.

Lots of dosh to flow into London where rents will be soaring to help businesses recover and return to profit in 2011. Oh well, its probably just financial services (Banksters) and they have unlimited supplies of cash all the time the plates keep on spinning.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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