Real Estate Investor Magazine South Africa April 2015 | Page 61

London office facts
Investing in the right opportunities
Turning to real estate investment and more importantly,
how to get your own slice of the London pie. Investing in
property often requires a substantial amount of capital
and leads to a concentration of risk. Investors do have
other options which offer liquidity, diversification and
access to properties, which are not always obtainable in
the investor’s personal capacity. One such investment
vehicle is to invest in a Real Estate Investment Trust
(REIT). These ‘Trusts’ are actually listed companies
that benefit from certain tax exemptions by paying
out most of their earnings as dividends. Investors can
simply buy the stocks of these companies and gain
access to a portfolio of professionally managed, large
scale real estate.
One such REIT that has attracted Reitway’s
attention is Derwent London. With London being

Europe’s tech capital, the global tech boom is driving
the creative industry’s demand for rental space. The
creative industry entails areas such as media, computer
programming and information services and include
companies like Facebook, LinkedIn and Google.
Derwent’s cool and edgy building design seem to be
preferred by Creative occupiers while demand is also
starting to increase from professional and business
services that require large office space. More specifically,
Derwent’s recently signed tenants include the likes of
Unilever, Deloitte and Burberry to name but a few.
The Sector is set to benefit from robust demand while
new space deliveries are falling in the near-term and
rental income estimated to grow at a healthy 9% in
2015. The breadth and depth of tenants wanting a slice
of London continues to grow and the London office
market is enjoying the boom.

RESOURCES
Reitway Global Property
www.reimag.co.za

April 2015 SA Real Estate Investor

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