Commercial Investment Real Estate May/June 2017 - Page 44

INTERNATIONAL B E AT London’s Big Deal CC Land Holdings Ltd., backed by a Hong Kong property investor, has purchased the Leadenhall Building in London for $1.42 bil- lion from the British Land PLC and Oxford Properties Group. Known as the Cheesegrater for its triangular shape, Leadenhall is the tall- est tower in London’s fi nancial district. Since Brexit, investors from China and Hong Kong are snapping up commercial properties in Lon- don because the yuan is up 12 percent versus the British pound, while its value has declined compared to the U.S. dollar. These investors have bought more than $3.6 billion of central London property in 2016, more than investors from the U.S. or Europe, according to JLL. 2016 European Transaction Volume Dips from Record Levels Real Private Consumption Growth, 2016 Forecasts [lowest to highest] 8.0 Entity 6.0 300 4.0 250 200 150 100 0.0 -2.0 50 2007 2008 2009 Source: Real Capital Analytics 2010 2011 2012 2013 2014 2015 2016 -4.0 0 2.0 UK Spa 350 . Portfolio Individual -6.0 Source: Oxford Economics Global Markets to Watch 2017 is expected to be a year of stronger economic growth but with greater policy uncertainty. The global economic cycle, which is in the mid-to-late stage, has been improved by fi scal stimulus in China. More government spending is on its way, especially in the U.S., spurring more economic growth. Key risks involve cooling trade relations between the U.S. and China; Brexit; and political elections in Europe, according to CBRE Research. 42 May | June 2017 COMMERCIAL INVESTMENT REAL ESTATE