Chinese investments further boost to London prime property
Chinese property investor Kailong has invested £160m into two London serviced office joint ventures in further evidence that the UK capital’s prime commercial property is still attractive despite concerns over a possible Brexit later in June.
Kailong has made the investment into property from Office Spcace in Town (OSiT) a UK serviced office provider. The Chinese company is taking a majority stake in LSOI, replacing Forum Partners, which initially was in a joint venture partner together with OSiT. It is also taking a majority stake in LSO II, which is targeting central London commercial office space in the City, West End and elsewhere.
The UK overall is estimated to account for 36% of serviced offices globally. Demand is being driven by the emergence of SME sized businesses looking for flexible workspace without long leases. Beyond London, the UK market includes key cities such as Manchester, Bristol, Glasgow and Edinburgh. London alone accounts for some 30% of the UK market, and has experienced an increase of some 67% in serviced office floorspace between 2003-2015.