South Korean Investors to Invest £4Bn in UK Real Estate
South Korean Investors to Invest £4Bn in UK Real Estate. South Korean investment in the U.K. commercial property market, H1 2018 hit £1.1 billion ($1.4 billion), more than doubles the £530 million ($672 million) invested in the previous year. According to Cushman & Wakefied the investment volumes set to continue to increase significantly, predicts could surpass £4 billion ($5 billion) by the year end.
South Korean Investors to Invest £4Bn in UK Real Estate. Four deals accounted for more than £1bn of real estate, all in central London, the largest of which was the £340m acquisition of 20 Old Bailey by Mirae Asset Global Investments.
The other three – Korea Investment Securities’ purchase of 70 Mark Lane, Samsung SRA’s acquisition of 200 Aldersgate, and the purchase of Cannon Bridge House by Mirae Asset Daewoo and NH Investment & Securities – all exceeded £200m.
South Korean investor appetite looks set to continue in the second half of 2018, as KAIM OBO Hana Financial Group had already purchased Gallagher Retail Park outside Walsall for £172m in July, Cushman & Wakefield said.
South Korean funds have also invested in the leisure sector in the first half of 2018, purchasing stakes in well-known hotel brands including The Dorchester and London Hilton on Park Lane. This trend looks to be continuing as a number of investors are still looking for the mezzanine tranches of capital in hotels across Europe and the UK.
The increased activity over recent years was a result of regulatory changes that have encouraged outward investment. The Capital Markets Act of 2015 kick-started the process and opened up the market to more potential capital.
Jonghan Kim, who specialises in advising firms from South Korea for Cushman & Wakefield’s EMEA capital markets team, said that the Koreans have only started to buy again in London in 2018 as there had been concerns on the impact on the UK market following the vote to leave the EU. Read more