Office development boosts London property market

Office development boosts London property market
03/08/2019 , by , in INTERNATIONAL

An Asian investor has offered to buy a landmark property development on London’s South Bank for more than £875m, in the latest boost to a real estate market affected this year by Brexit jitters.

The investor has made a formal offer to buy Southbank Place, a development that includes a large WeWork co-working space opening this year and the London headquarters of Shell, according to two people briefed on the situation.

They have offered above the £875m asking price, increasing the probability that the deal will be completed, although it could still fall through, the people said. Developers Almacantar have for now ceased marketing the building.

If the deal completes it would be one of the largest in London’s office market this year, after investment volumes declined sharply from 2018 on Brexit worries — partly because of a reluctance among potential vendors, some of whom are holding off in hopes of greater political certainty.

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