EG FINANCE & INVESTMENT SUMMIT: Canadian giant Brookfield will be looking to move out of the city of London for new investment opportunities, according to newly installed chief executive Neil Thompson.
Speaking at the EG Finance and Investment Summit, he said the conglomerate would look at the West End, South Bank and fringe areas such as Shoreditch.
“We put our capital to work where we can invest in growth areas: markets like Shoreditch where we think there is a significant amount to come.”
Brookfield owns one of the most substantial office portfolios in London, with assets including 99 and 100 Bishopsgate, Aldgate Tower and Principal Place. Currently, however, it takes just eight minutes to walk between the two furthest assets.
“All of that portfolio is around Liverpool street station,” said Thompson. “One of my reasons for joining is to make sure we are more of a pan-London business.”
Thompson said that to ensure returns are in the double digits, Brookfield will continue to take development and management risk.
“We are not an income buyer… If you are buying into London at 4%, chances are your return will be 4%… As a result of that we will be looking to be very active on the buildings we own.”
He added that Brookfield will be looking to take a bit of risk, which could emerge as others look to exit a London they perceive as risky.
“One man’s risk is another’s opportunity,” he said.
He also said the investor would not be afraid of taking on mixed-use assets.
“What we tend to find in London is we are often looking at mixed-use developments, and we are not too concerned at something with a development angle with a significant component in retail, or a residential angle as well.”
“We are not going to be shy about having to be office led, and its certainly not something we are constrained about.”
Listen to the full podcast from the summit here
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
