According to IP Global, a property investment company specializing in securing prime investment opportunities in 20 emerging and developed markets around the world, all its property investments in London are offering positive uplift.
It says they are outstripping the property yield benchmarks set by the UK’s Land Registry and that with the correct advice, London represents a strong investment option for investors.
IP Global’s valuations have produced on average annualised unleveraged returns of 8.1% and leveraged annualised returns of 11.9%. This is against a benchmark for the City of 2.8%, and demonstrates the expertise of the IP Global investment team in selection the best selection of projects for investment purposes.
The report also offers an insight into the performance of projects in specific London boroughs, with Islington performing the strongest, with an annualised return of 11.5%. Other high performing projects include the Cobb Street, Myrdle Street and Mulberry projects in Tower Hamlets offering 4.5% and IP Global’s Grange Gardens project in Southwark, offering returns of 3.5%.
‘With the turbulent year of 2011 nearly behind us, IP Global is encouraging Middle East investors to consider alternatives to the so called golden postcodes of Mayfair, Knightsbridge, Chelsea and Belgravia.
‘Throughout 2011 investors have increasingly viewed the London real estate market as a relatively safe haven for capital, driven in part by the social and economic unrest in Middle Eastern markets,’ said Robert Pearce, director of IP Global.
‘The mature legal framework that underpins the UK property market, low cost of borrowing and under supply of housing stock in key areas of central London are all factors that have attracted foreign investment to London, especially from Gulf countries,’ he explained.
‘We expect this trend to continue into 2012, as Middle Eastern investors seek long term stability through real assets, amidst increasing volatility in Global equity and bond markets. Equally, we are encouraging our clients to diversify their portfolios into new London boroughs, in order to open up new opportunity,’ he added.
