Brexit, Britain’s withdrawal from the European Union, has hung like a dark cloud over London, no more so than in the real-estate market.
After the referendum in June last year that saw the country vote to leave the European Union, British real estate analysis firm Prequin asked more than 90 major investors how they would react to the withdrawal. About half of the respondents, all of whom already owned properties on the island, said they would be investing less in the future.
We don’t know whether the Bavarian Chamber of Insurance, the Bavarian Pension Fund and DekaBank were among the skeptics. But if so, they aren’t anymore. Less than a year after the vote, they are all investing heavily in London.
Last week the Bavarian companies, together with Deutsche Finance International and asset management firm Yoo, acquired the Olympia London Exhibition Center for €330 million ($352 million). Two months earlier, Deka, a subsidiary of savings bank association, bought the new London headquarters of Facebook for the Westinvest Interselect and Deka Immobilien Europa open real estate funds. It paid €435 million.