London's commercial property market recovered in the second quarter of 2009, with an increase in the number of purchase deals for offices, in part because of deals involving Israeli companies, according to a report by global real estate services firm Jones Lang LaSalle.
Jones Lang Lasalle head of West End markets Damian Corbett reported that the volume of purchase deals in the offices sector in Central London rose in the second quarter of 2009 for the first time in 15 months. He said, "There was a 58% increase in the number of deals in the second quarter with ₤1.3 billion invested."
Corbett added, "During the second quarter there was a large range of international purchases with 43% of investments coming from the Middle East and notable purchases from Israel."
Corbett was referring to Israeli deals such as the purchase in May by Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) for ₤40 million of a building in Central London from the UK's land Securities Investments Fund, which was leased to the UK government.
There has recently been aroused interest from Israeli firms in income producing property in London. Nochi Dankner's IDB Holding Corp. (TASE:IDBH) has been weighing up investing hundreds of million of shekels in London's real estate market and last month reportedly investigated investing ₤145 million together with Harel Insurance for 50% of the Broadgate project.
In addition, an Israeli entrepreneur, Gil Levy, will build two high-rise towers in London's Blackfriars Road - one will be a 23-floor office tower and the second a 42-floor residential tower. Market estimates are that the investment will amount to ₤406 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2009
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