MIPIM: London Looks To Reposition New And Traditional Areas For Investment

London’s traditional real estate markets are being reshaped, with growing mixed-use, expanding residential and living stock, and a strategy to reimagine areas of the capital.

That was one of the key messages for UK real estate to emerge from last week's MIPIM property conference in Cannes.

Opportunity London Chief Executive Jace Tyrrell told Bisnow that London was “united as never before” at MIPIM this year, with the city presenting an array of investment opportunities totalling nearly £10B and with an estimated gross development value of £38B. 

Opportunity London's recent investment prospectus showcased nine major potential development schemes and flagged over 100 possible investment sites across the UK capital, targeting sovereign wealth funds, institutional investors and family offices.

“Very often investors are presented with opportunities but without putting forward the underlying business case. So we spent a lot of time curating these projects, which really brings across the significant scale, the financial returns, the planning consents and the political backing to give investors much more confidence,” Tyrrell said.

“We’re very aware that capital has the choice to go wherever investors want, so we believe that presenting delivery-ready projects and opportunities is an important step in attracting investors,” he said. “We also believe that this is a model that could be replicated for cities around the UK, so it’s a potential opportunity not just for London but the whole country.”

Meanwhile, the City of London was at MIPIM putting itself forward as a destination that had more to offer beyond its reputation as a centre for financial sector office workers.

The City “used to go to sleep at night”, according to City of London Corporation Policy Chairman Chris Hayward. Now it has become a busy and more vibrant quarter in the evenings, offering more leisure options for young professionals working there, he said as he stressed that this shift was crucial if the City was to successfully grow in the future.

“We believe the Square Mile has so much more potential and growth opportunities to fulfill,” he said.

Indeed, London is now the most attractive office market for investors in Europe following a very challenging period, according to BNP Paribas Real Estate Head of City Investment James Carrington.

“The London market has essentially reached the bottom and is probably the most attractive major city in which to invest in Europe right now, which means capital is coming back," he said during a panel session at MIPIM. "Rental growth is a key driver with continued upwards pressure in the likes of Mayfair and the City.” 

Carrington added that the lack of new, Grade A office stock meant that there were also increasing opportunities to repurpose older assets.

“Those who can take on refurbishment risk or have good local knowledge of supply and demand dynamics could emerge as the winners of the next few years,” he said.