Gerald Ronson, boss of Heron International, expects his business, which has a £500 million investment portfolio and a £1.5 billion development programme, to do well.
'The best property investments Heron has made have been during a downturn. It is during these times that we believe we are most likely to identify opportunities which can make real returns for our shareholders,' he told an audience of 370 business leaders at Heron's annual lunch in London.
'We are currently sailing in a force 9 storm in the middle of the Atlantic but we all know that, ultimately, storms subside and it is those of us with sound foundations and long term vision who will survive the storm and come out stronger and wiser the other side.'
He recalled the last downturn in the early 1990s. 'I said at the time it was about staying alive to '95 and going to heaven in '97. So we have had our 10 years of heaven. All those who believed property was a fast track to riches are now learning harsh lessons', he continued.
He believes London is still the best place in the world for investment in both the commercial and residential sectors. But he takes a swipe at the UK government and its current policies which include making non resident investors pay more tax.
'For us it is all about the very best property, in the very best location. London is unique. As the financial capital of the world, London is the place to be. I am confident not only about commercial property but also central London residential property.
'But we need to protect our position as the financial capital of the world. We need to ensure people continue to want to be based in London. We have to offer them the most desirable assets in the best locations not frighten them away with confused signals from the Treasury.'
Heron is heavily involved in the London development scene, carrying out the Heron Tower and Milton Court, which will incorporate the new Guildhall School of Music & Drama and 300 residential units, in the City and The Peak office and retail development opposite Victoria Station.
