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Sunset at Tower Bridge Credit: Vic Thomasson, City of London
New research1 from
Hawker Beechcraft Corporation (HBC), a US manufacturer of business, special
mission and trainer aircraft, has found that strong investment by overseas
corporates in commercial property in the City of London has coincided with an
increase in business flights into the capital. Roughly £39bn worth of commercial
property in the City is owned by foreign investors, with German businesses the
biggest foreign investors, owning around 13.5m square feet of office space at an
estimated valuation of £12bn. This represents almost a third (31%) of the total
overseas investment in commercial property in the City.
One aspect of London
which appeals to international investors is the large number of airports
servicing the city. This appears to be a significant factor for German
businesses, as over the first half of 2012 Germany saw the third highest volume
of business flights into the UK.
So far this year, flights from Germany have
been landing in Britain at average intervals of less than every two hours.
Furthermore, between 2009 and 2011, the number of business flights into the UK
from Germany increased by 18.1%.
Other
well-represented regions in the City of London include the Middle East and
Ireland, whose businesses own an estimated £4.5bn and £3bn of commercial
property there respectively.
Overall, a staggering 52% of commercial properties
in the City of London, representing 44m square feet of office space, are owned
by foreign investors.
HBC
says it is currently the
leading aircraft manufacturer in the UK, holding a 37% market share in the
segments in which it competes, including a 54% market share in turboprop
aircraft2.
“London remains one
of the biggest and most influential financial capitals in the world and it is
therefore no surprise to see that commercial properties in the City are still
very much sought-after by overseas businesses,” said Sean McGeough, HBC
president, Europe, Middle East, Africa and Asia Pacific. “Not only is London
perfect for conducting business on a global scale, but it is also supported by a
high number of business airports such as London City, Biggin Hill and
Farnborough, allowing for travel into the heart of the city from continental
Europe within a matter of hours.”
Table of
nationalities with the biggest commercial property ownership in the City of
London
Country
Estimated number of commercial properties owned in
the City of London
Estimated square footage of commercial properties
owned in the City of London (ft2)
Total estimated value of properties owned in the City
of London
United Kingdom
380
40,600,000
£36.1bn
Germany
127
13,500,000
£12.0bn
Middle East
47
5,100,000
£4.5bn
Ireland
32
3,400,000
£3.0bn
Other Europe
40
4,200,000
£3.76bn
World (excl. Europe)
165
17,800,000
£15.78bn
TOTAL
791
84,600,000
£75.14bn
Hawker Beechcraft Corporation is
a manufacturer of business, special mission, light attack and trainer aircraft –
designing, marketing and supporting aviation products and services for
businesses, governments and individuals worldwide. The company’s headquarters
and major facilities are located in Wichita, Kansas.
1 HBC
analysis of Development Securities and University of Cambridge data
