As Londoners, we continually beat ourselves up over the perceived shortcomings of our great city. From the lack of affordable housing to our overloaded public transport system. From our unreliable weather to our gridlocked traffic and polluted atmosphere. We engage in seemingly endless debates about where to site a new airport or even a new runway. And, when a decision is finally made, the lead-in period somehow always seems so much longer than in other cities. It is therefore refreshing to hear how London is seen by those with a global overview.
The UK-China Business Leaders Summit hosted by the irrepressible Xu Weiping, chairman of ABP at Royal Albert Dock, E16 (travel eastwards on the DLR to Beckton!) last week was an eye-opener. Part of a five-day Chinese trade mission to the UK by more than 150 Chinese business leaders, even the monotone simultaneous translation couldn’t mask the enthusiasm of the rousing addresses made by a number of senior Chinese businessmen. A Chinese Embassy official promised: “We will see explosive growth of Chinese investment in your country.”
The Chinese also clearly see us Brits as creative. As was pointed out, this is the home of Sir Isaac Newton, James Watt and… ping-pong! Much was also made of London’s superior offering in culture, restaurants, shops, schools and open spaces. Jeff Cao, head of Asia Pacific at London & Partners, the mayor of London’s economic development and international promotional agency, said: “Chinese investors want to be associated with the prestige of London.” The Londoners in the audience were feeling quite enthused themselves.
Next day the BPF Annual Conference panel session on overseas investment also gave pause for thought. We heard from Ken Wong of US developer Related Companies. It is responsible for the 17m sq ft Hudson Yards regeneration scheme in Manhattan and has interests in China, Brazil and Abu Dhabi. New to London, it has an interest in a 25-acre site at Euston Station. Why London? Wong described as “comforting” the rule of law and the British sense of fair play, and sees London as the capital of fashion and food. “London has a boldness, confidence and delivery of large-scale projects,” he said. He cited the success of the London Olympics, adding: “The US does not deliver on big ideas like that.” Our legal system was singled out for praise compared with what he described as the “paralytic” US system of settling legal disputes. “London is a top market that has got its act together,” he said.
Goodwin Gaw, of Hong Kong-based Gaw Capital, which has recently bought the Lloyd’s building in the City and Waterside House in Paddington, added that airport infrastructure is better in London than the US, citing London’s Terminal 5 compared with JFK and LAX to support his case.
Without the global investors’ perspective, we were back to usual territory at the Movers & Shakers Residential Breakfast, grappling with the problem of providing 49,000 homes a year for Londoners (when current output is nearer 25,000), the shortcomings of our planning system, and the delay in getting projects off the ground…
Susan Freeman, partner, Mishcon de Reya
