Canary Wharf Retail Property Eclipses £1 Billion

By Simon Morris On Friday, September 26 th, 2014 · no Comments · In , , ,

The recent suggestion that Canary Wharf retail property has eclipsed £1 billion for the first time, has further shown Simon Morris the value of the central London market.

Simon Morris, Expert in London Property

Not only does Simon Morris use his commercial and residential property expertise to advise UK property investment funds on how to increase capital on their property investment funds, Simon is a London-based specialist.

As such, Simon has an intimate knowledge of this market, and how best to capitalise on it to drive revenue. That is why it has come to no surprise to Simon that retail property values in Canary Wharf have surpassed £1 billion for the first time.

Canary Wharf Group Announces Rise of Retail Property Values

Specifically, International Business Times reported this week, that the company who currently owns Canary Wharf, Songbird Estates, announced in its semi-annual report that for the first time the collective retail value of the building went past the £1bn ($1.63bn, €1.26bn) mark.

The report suggested that “Canary Wharf Group is now seeing rents strengthen and believes that this will sustain current yields and underpin valuations for the kind of large commercial buildings in its portfolio,”

It went on to argue that “during the period, its retail portfolio passed the £1bn landmark for the first time, and it has also started to see the benefits of the strategic decision to move into residential markets announced in March (2014).”

London, the Most Expensive Property Market in the World

In Simon Morris’ opinion, this illustrates where the London retail market is right now. Essentially, the economic recovery, which has driven profit in London more than any other city in the UK, due to its place as the country’s economic centre, has made commercial, especially retail, property more valuable.

We see this through recent figures about London. As Simon has previously suggested, London has become the world’s most expensive city for property. Rents have gone up by 9% and property values have gone up by 18.4%. Therefore, it makes sense that retail values in Canary Wharf have surpassed one billion – retail values are going up across London.

Effectively Drive Revenue on Retail Property in the Capital

So this suggests that London is high risk, high reward for UK property investment funds right now, as they would require large capital volumes to investment, but could receive higher profit volumes in return. However, Simon Morris would argue that its’ entirely possible to invest in London without committing to a sole purchase, to ensure you can effectively drive revenue on retail property in the capital.

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