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.
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May | June 2017
COMMERCIAL INVESTMENT REAL ESTATE