With a total of £1.3 billion (S$2.5 billion) worth of purchases, Malaysians were the top property buyers in London in the seven months leading up to 24 July 2012, surpassing British buyers and pushing those from the US into second place, according to CBRE Group.
They are also set to become the leading buyers of London offices for the first time in 2012, buoyed by the £8 billion (S$15.5 billion) Battersea Power Station redevelopment project which is owned by Sime Darby, SP Setia and the Employees Provident Fund (EPF).
During his four-day visit to the UK in early July, Prime Minister Datuk Seri Najib Razak said Malaysia will become a major property player in London.
He noted that Malaysia’s investments in the country have been growing significantly, with government-linked firms on the lookout for potential developments in the financial hub.
For instance, the EPF is eyeing investment opportunities in London, and likewise for Mara. Other Malaysian firms getting involved are Eastern & Oriental Bhd, Oriental Holdings Bhd, IJM Land Bhd and Permodalan Nasional Bhd (PNB).
PNB owns three London properties – 90 High Holbron, One Exchange Square, as well as Milton and Shire House. IJM Land also has a mixed development along Royal Mint Street, while Genting Malaysia is spending £120 million (S$232 million) to build a leisure and entertainment complex in Birmingham.
The latest Malaysian firm to join the foray is privately-owned AlloyMtd Group, which acquired a development site on London’s fringe known as One Crown Place.
Valued at around £57.5 million (S$111.2 million), the site in the borough of Hackney is zoned for a 24-storey tower, which can accommodate 35,303.2 sq m of office, retail and hotel space.
Image: Left to Right: Boris Johnson, the Mayor of London, UK Prime Minister David Cameron, and Datuk Seri Najib Razak, PM of Malaysia at the ground-breaking for Battersea Power Station earlier this month.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
New Johor bus terminal to be ready soon