The chief executive of public-private partnership Opportunity London says the capital is attracting investor interest at a level not seen for years.
Jace Tyrrell says although all countries were affected by the financial crisis and the fallout from the Covid-19 pandemic, the UK had also suffered for more specific reasons.
He says: “Other countries didn’t have their Brexit moments. We had two or three years there where nothing happened in real estate anywhere near the other levels we had before. London’s been quite closed for about 15 years in terms of investments. Now, we’re back on.”
Tyrrell spoke with EG as Opportunity London launched its biannual London Investment Prospectus. Highlighting £10.6bn of investable opportunities with a combined gross development value of £44bn, the prospectus is part of Opportunity London’s pitch to investors as they look to generate capital investment and stimulate growth in the city.
“We’re independent, we’re not beholden to one scheme for a fee,” Tyrrell says. “We’re just trying to get the deals done for London effectively.”
The opportunities include London’s first purpose-built film campus; an 85-acre, waterside regeneration masterplan creating 10,000 homes and 6,000 jobs; and the future phases of the Battersea Power Station development, which will provide roughly 4,000 new homes, more than 250 retail and hospitality units and 19 acres of public realm.
London’s been quite closed for about 15 years in terms of investments. Now, we’re back on
Ready to work
According to a study of 800 global investors conducted by Opportunity London’s research partner JLL, the interest among investors is substantial. More than 80% of respondents said the city was either moderately or very attractive when compared with other major investment markets. In markets such as the US or the EU, Tyrrell adds, some investors view the tax and regulatory environments as restricting liquidity.
“We’re a very liquid city,” Tyrrell says. “Investors tell us that’s quite advantageous.” The election of a new Labour government has also helped buoy investor confidence, he adds.
Investors will also want to see that local authorities in London are open for business, he says, adding that many council leaders may believe they are more accessible than is actually perceived.
“When an investor looks at London or a part of London, they want to know they can work with the authority, with the political leadership and the officers.”
One example of such leadership he cites is the outgoing leader of Barking & Dagenham council, Darren Rodwell. “He was so pro-growth,” Tyrrell says. “You’re very clear on the values, the outcome that you want.”
Wish list
Asked what his one wish would be from the new government, Tyrrell points to fiscal devolution – or “actually giving London some more power”.
This, he says, would unlock further opportunities for the city to create the incentives it needs to stimulate change, as New York has done through incentives such as Local Law 97.
“It’s massive,” says Tyrrell: “It’s pushing them all to get to net zero far quicker in the real estate industry and there’s huge incentives, tax incentives to do that. It shifted the market in two years.”
Local Law 97 forces most buildings of more than 25,000 sq ft to meet stricter energy efficiency and emissions standards as of this year, with tougher limits due to be imposed in 2030. This is expected to reduce New York’s carbon emissions by around 6m tones by 2030.
Tyrrell says using similar “levers” would change the UK’s current system, which is currently “more stick than carrot.”
Then he decides one wish is not enough: “The other would be Euston.”
Tyrrell wants to see the completion of the government-funded High Speed Rail 2 infrastructure project due to link London’s Euston station to Birmingham. That project could help the government unlock the private capital it wants, says Tyrrell.
“That’s going to be, for London as a whole, an incredible opportunity. Every pound they want from the market, that would give you probably 10 times the amount if they could unlock Euston.”
“So,” he says with a grin, “that would be my 1.5 wishes.”
Image from PR
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