Member Article

More property deals inked following Brexit as foreign investors hunt for bargains

Property developer Derwent has announced that it has pre-let 84,000 sq ft of office space at the White Chapel Building near Aldgate.

The eight-storey building, which the developers acquired in December last year, will see four new occupants settling in the East London property all on ten year leases as part of its phase 1 redevelopment.

Current refurbishment work is expected to be completed by the fourth quarter of this year, before phase 2 begins on the building’s lower floors.

Tellingly, three of the deals were inked following the EU referendum, suggesting that London’s office market is resisting any downward pressure from the ongoing Brexit uncertainty.

John Burns, Chief Executive Officer of Derwent London, commented: “We are very pleased to introduce four new occupiers to our portfolio, three of which signed leases after the EU referendum.

“Their broad spread of activities and commitment is an endorsement of our strategy of creating a mid-market rental product in this significantly improved area on the eastern side of the City and the Tech Belt.”

It follows yesterday’s news that US bank Wells Fargo has signed a £300m mega deal for its new UK headquarters in the City of London and the positive figures posted by serviced office provider Workspace last week as firms continue to do business.

One ironic offshoot from last month’s referendum is that the weaker pound has made London property, both offices and residential, an even more attractive proposition for foreign investors.

Speaking to Bloomberg Business, Jason Wang who is Chief Executive Officer at Singapore’s Stamford Management, outlined how London will continue to be an attractive market for Far Eastern buyers due to its continued role as a financial hub and that sterling’s dive is a great opportunity to ‘pick up some prime London properties’ on the cheap.

However, uncertainty is still stalking the commercial sector, with real estate group CBRE noting a 22% drop in office uptake in the second quarter of this year as many firm’s hold off making moves until Britain’s relationship with the EU becomes clearer.