MANCHESTER ENLISTS PROFESSOR BRIAN COX TO PUSH THE CITY’S CLAIM TO BE THE PLACE TO DO SCIENCE IN THE UK
COX ON A SOAPBOX
Investors look to regions
BY JACK SIDDERS Major international investors are gearing up for a push on the UK regions amid concerns prime central London property is overheating. The expectation that the flood of new
overseas buyers, which have helped compress prime London yields, will turn to other UK regions in search of value was among predictions made at several MIPIM events yesterday. CBRE Global Investors country manager for
the UK, Jean Lamothe said the £142m deal by a consortium of investors including Chinese sovereign wealth fund Gingko Tree to buy Co-operative Group’s Manchester HQ had “set a new benchmark for future investment”. He told EG: “Our clients are looking at investing
more, particularly in light of the Co-op deal. “Some investors are looking up the risk curve, buying the best properties but with shorter
income, as opposed to the London market, which I would say is becoming fully priced.” He added: “Asian money, in particular,
started in London but you will see it spreading out.” Hines project director Mark Swetman said
the firm’s global REIT was increasingly looking at cities including Manchester, Edinburgh and Glasgow for opportunities to invest as much as £250m. And CBRE executive director central
London capital markets Simon Barrlowcliff added: “We are actively talking to clients that made their London debut in the past couple of years about acquisitions in the regions.” Jones Lang La Salle, which advised on
the Co-op deal, will today host an event with the British Property Federation, highlighting the trend.