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HK turmoil spells opportunity for London property owners
LONDON landlords eager to sell properties in the United Kingdom's capital are seeing strong demand from investors fleeing an even more uncertain future in Hong Kong.
As Oxford Properties Group, the real estate arm of the Ontario Municipal Employees Retirement System (OMERS), has looked to wind down some investments in London, worries over Brexit have taken a back seat.
"There's a very strong bid right now from the flight capital, particularly out of Hong Kong," Oxford President Michael Turner said. "London is the most international market in the world. And when we have a brand-new, shiny, well-developed building and somebody says: 'I just want to get my money out of China.' Then we say: 'Here you go.'"
In the past four years, Oxford has sold stakes in London offices including the Cheesegrater skyscraper and buildings on Paternoster Square.
Bloomberg reported last month that the firm is considering a deal to sell its stake in a £700 million (S$1.2 billion) office complex in London's financial district to its partner, Brookfield Property Partners LP.
Mr Turner stressed that Oxford is not leaving London; he just sees better opportunities elsewhere for the next few years. Selling the UK properties has freed up funds to extend a global push. Mr Turner said Oxford is looking for growth in Asia, as well as in the US South and West. It is also one of the developers behind New York's Hudson Yards.
Mr Turner spoke on Thursday on the sidelines of a symposium in San Francisco that Oxford co-hosted with OMERS' venture capital arm. The unit, which set up a Bay Area office earlier this year, is seeking to make more investments in property technology and presented a series of panels on innovative approaches to office design, retailing and building construction. BLOOMBERG