LREF 2017: Investor interest in the West End is still strong, with renewed appetite despite current political uncertainty, according to Henry Moss, partner at Ashurst.
Moss was speaking as part of a panel of industry heavyweights at the London Real Estate Forum, discussing the future of the West End.
He said: “Now we are seeing interest from places like South Korea, Indonesia and Singapore, which we haven’t seen in three years.
“A few months after the [EU] referendum were not great from the investment point of view, but over time Brexit has increased appetite for the West End due a bit of price adjustment. Now we have a hung parliament and currency markets have taken a hit – some investors from overseas are seeing that as a positive.”
Marcus Geddes, head of property at Landsec, said the company was focusing on the development market.
“The land and investment market is very fully priced, which doesn’t really sit well with our ambitions at the moment.”
Change was another key theme of the discussion, with delegates explaining how the West End will evolve over the next couple of years
Councillor Daniel Astaire from Westminster City Council stressed the importance of being able to deliver affordable housing, growth and density in the city, particularly regarding the council’s current review of its tall buildings policy.
“The Crown Estate has shown how we can increase floorspace and density without going up too high. We will come up with a policy when we have gone through the several hundred consultations we have received,” he said.
There was an emphasis on meeting the needs of people who live and work in the city, with calls to improve public realm and diversify building use. Panellists agreed that workers and commuters were looking for more of an “experience”.
Jace Tyrell, chief executive of the New West End Company, said the arrival of Crossrail would bring a host of opportunities to drive this forward.
“This is a huge infrastructure project. What sort of experience do customers want to have when they arrive here? We need more pedestrian-friendly ideas and there is significant opportunity for our businesses – where is this new Crossrail customer going to be coming from, what does it mean for types of retail?
“That is why policies coming through need to really future-proof the West End.”
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