London is one of the most liquid property markets, as well as the biggest, in Europe. Property investors use properties as part of their fund management and historically have developed a type of lease that divides risk between investors and occupiers.
The following facts are presented to facilitate your appreciation of the dynamics that drive the city of London and introduce why REDAB PROPERTIES PLC invests so confidently in the British Capital.
In recent years London’s position as a centre for trade, finance and business combined with its skilled and dynamic workforce has produced a huge expansion in jobs, business and the population.
London’s success is based on its competitive strengths across a range of factors including access to markets, qualified staff, external and internal transport links, communications, availability of office space and languages spoken.
London has a thriving economy and is one of the most important business cities in the world. London’s gross value added (GVA) per head is over 50 per cent above the national average.
London is the driving force behind the UK’s economy and is one of the world’s largest financial centers’ with every leading financial institution represented in London. Despite the current economic climate London’s economy is expected to grow at a faster rate than New York, Paris or any other established global city and will become the fourth largest city economy in the world by 2020.
London is Europe’s most visited location and visitor spending in London amounts to around £14.3 billion per year, drawing nearly 50% of all overseas visits to the UK. In 2006, estimates suggest that more than 25 million people visited London for an overnight stay, 15.2 million from overseas and 10.3 million from within the UK. In addition to this, 150 million tourist day trips are made annually to the capital
London continues to develop and invest in itself: London’s Thames Gateway development is the largest urban regeneration project in Europe. .
The most influential decision-makers work in London, from global corporations and trade associations to international and national politics. London is also the gateway to the European Union’s 28 member states, the biggest single market in the world, with a population of 500 million. In terms of workforce, London is home to Europes largest regional labour pool with 9.8 million workers, one in three of which hold a university degree, flexible labour markets also mean businesses can scale both up and down as quickly as required.
London is home to Europe’s largest regional workforce of more than 9.8 million people, with one in three Londoners holding a university degree.
London’s population is extremely dynamic and is more highly skilled than the rest of the UK because it attracts well-qualified inward migrants from the UK and abroad to supplement its own young people entering the labour market (as well as its existing resident population). London also draws on large numbers of daily commuters living in the surrounding regions.
It is estimated that over the next 5 years another 380,000 workers will arrive in London.
Property prices are higher, and have risen at a faster rate in London over the past ten years than in any other region in the UK.
The average asking price for a London property now stands at more than £500,000 compared with the average for all of England and Wales of £250,000
London’s population will continue to grow and must accommodate a further 1,000,000 people over the next 10 years, amounting to around 600,000 new homes a year and continued long term house building growth.
DEVELOPMENT & CONSTRUCTION
The 2012 Olympics has seen the creation of a 587 acre Olympic Park which is the largest regeneration project in Europe. Spearheaded by the Olympics and Stratford City, London is expanding eastwards into the Thames Gateway, which expects to see £40 billion worth of private investment over the next two or three decades after the Olympics.
In May 2013, The Mayor, Boris Johnson, announced details of a £1bn deal to transform London’s historic docklands into the capital’s next business district, forging new trade links with China and other economies in the Asia-Pacific region and securing billions of pounds of inward investment in the UK economy.
Owned by the Greater London Authority and situated in the heart of Royal Docks Enterprise Zone, the 35-acre site at Royal Albert Dock is set to be transformed by ABP China (Holding), a successful commercial developer, into a gateway for Asian and Chinese business seeking to establish headquarters in Europe as well as other businesses wanting to set up in the capital.
Historically the trading heartland of the capital, the deal will re-instate the Royal Docks as a commercial and trading centre for the 21st century, delivering around 20,000 full-time jobs and boosting local employment in Newham by 30 per cent. When complete the site will become London’s third business district and, according to initial projections, be worth £6bn to the UK economy, generating £23m in business rates annually and acting as a catalyst for further development in the area.
The largest development of its kind in the UK, the state-of-the-art business district will act as a platform for financial, high-tech and knowledge driven industries looking establish and drive forward their business in UK and European markets. The deal represents one of the first direct investment by a Chinese developer in London’s property market and will eventually be home to over 3.2 million square feet of high quality work, retail and leisure space, including 2.5 million square feet of prime office space, creating a new, vibrant 24/7 district on London’s waterways.
All of the above comes with a commitment to make London a more attractive, well designed and greener city.
23rd June 2016 referendum became a victory for Brexit. Negotiations about leaving the EU will begin 2017.
Our long-term goal continues to lead our day to day operation, which is to create LONG TERM SHAREHOLDER VALUE.
We will achieve this by continuing to:
- Carry out very active management
- Use our in-house experienced team to develop attractive new projects
- Provide our tenants with high quality functional space
- To create designs so that future tenants more or less do not have purchase power from grid or gas
- Working on building relationships with funders
- Be prepared to respond quickly to new opportunities
- Keep contacts with local markets that we work in
In order to expand the business and raise capital, REDAB looked to its Swedish origins, offering ‘handpicked’ investors the opportunity to invest in the company.
The Board of Directors intends to continue this strategy to increase the number of investors in the company. As of May 2016 we have 257 external investors.
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