LISTEN: In a series of articles for Estates Gazette beginning this week, lawyers from Irwin Mitchell are taking a comprehensive look at UK real estate from the point of view of Chinese investors.
An estimated £3.6bn of Chinese capital was spent in the UK property market in 2013, and interest has been growing since – Ping An Insurance purchased the Lloyd’s Building, EC3, for £260m, China Life took a 70% stake in 10 Upper Bank Street, E14, for £795m and ABP (China) Holdings Group has launched the 35-acre development of London’s third business district at Royal Albert Dock, E16, valued at approximately £1.7bn.
On Monday, Joseph Lau’s Chinese Estates emerged as the frontrunner to buy the freehold of Zara’s new shop on the east end of Oxford Street for £183m, which would be the company’s second purchase in less than a month, following the acquisition of the Mayfair headquarters of private bank Kleinwort Benson at 14 St George Street, W1, for £121.7m.
Against that background, the four-part When the Dragon Meets the Lion series explores some of the major issues facing Chinese investors as they confront the very different UK real estate market.
In the first article, Rob Thompson, head of real estate London at Irwin Mitchell, gives an overview of the sector, highlighting some of the potential surprises that lie in store – including major issues like right to light, and longer lease terms.
Future articles in the series will explore the UK tax regime, planning system and difficulties that can arise in enforcing arbitrators’ awards in China.
Click here to read Thompson’s opening article.
To celebrate the launch of the series, Thompson spoke to EG about what readers can expect.
