International Festival for Business 2016: Can Liverpool be a gateway to the world? The city is fighting Manchester to attract European and Asian investors, writes Louisa Clarence-Smith
Liverpool may be a bit “out on a limb” in terms of its connectivity to the other major cities of the Northern Powerhouse, but it is appreciated by international investors, Mason Owen director Simon Bland said at an Estates Gazette City Talks panel.
“The perception outside of the North West is still that Liverpool is what it was 20 or 30 years ago, and when they come and visit, property investors almost fall off their chairs,” he said. “Overseas investors understand the trading heritage and see Liverpool for what it is.”
The city has been far behind Manchester in terms of investment volumes over the past five years but that could change. Investment volumes in Liverpool offices in Q1 2016 were £37m, compared to £269.6m in Manchester.
British Property Federation chief executive Melanie Leech said the key to continuing that was to create a “differentiated identity and clear vision within the Northern Powerhouse”, as well as improved transport infrastructure.
A delegation of Chinese investors from Chengdu attended the conference and signed a memorandum of understanding with the City of Liverpool and BPF to help promote bilateral trade, but did not announce any investment. Asked whether he saw Liverpool as a good investment opportunity, Yin Jian, deputy director general of Chengdu Municipal Commission of Commerce, said: “We only arrived today, but our first impression is that this is a historic and cultural city with natural beauty, and it seems to me that all the people here are very inclusive.”
DLA Piper partner Philip Rooney suggested public sector incentives such as rental guarantees were needed to inspire confidence from developers.
Liverpool City Council has been driving forward development, with projects including the Exhibition Centre Liverpool and the four-star Pullman Hotel waterside development. Nick Putnam, the city council’s divisional director for development and housing, said it was looking at building its own multi-storey car parks and offices for the private sector.
Housing, cultural opportunities and the ability to retain talent from the universities is key, said Bland. “If you are going to locate your headquarters here, you need to know the city will have all the benefits that your top executive would want.”
Why should Asian investors look to Liverpool over Manchester?
- Brian Meharg, finance director, Promenade Estates: Liverpool offers better value for money, and better returns.
- Simon Bland, director, Mason Owen: The perception of the UK is such that property here is at a discount to Manchester. But also we have a world-class shopping centre that is going from strength to strength, and the office market is at a point where it has only go one way, which is up.
- Philip Rooney, partner, DLA Piper:
It is a place which has always understood that we need to look outside of the UK culturally. And doing business with people outside of the UK has been second nature here for two or three hundred years. - Lyslee Li, China Business Development Manager at Gibbs Investment: Liverpool is much more beautiful because of the docks. This makes the city look more vibrant. And it is the culture here – Liverpool has the longest history of the Chinese here so the Chinese really know Liverpool quite well. Investment returns here will be higher than in Manchester because the price in Manchester is higher than in Liverpool.
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