LONDON’S PRIME PROPERTY ASSETS ARE FOREIGN CURRENCY PLAYERS’ TROPHIES.

MCBAINS COOPER

PROPERTY & CONSTRUCTION CONSULTANCY

PRESS RELEASE

March 22, 2011.

LONDON’S PRIME PROPERTY ASSETS ARE FOREIGN CURRENCY PLAYERS’ TROPHIES.

A gilt-framed window of investment opportunity - through which deal-hungry foreign pension funds and investors are piling - is driving a third speed to the property economy in the UK beyond the traditional north-south divide.

McBains Cooper, the international property and construction consultancy, says that while there’s that continuing north-south split in the becalmed UK property market, there’s a distinct ring of bright water in the heart of the central London property pool that sets it massively apart from everywhere else.

“Based on our experience of pre-acquisition work, we’ve noticed a consistent trend in big-ticket residential asset movement and commercial property deals in central London arising from a perfect but very localised combination of cultural, business and economic circumstances – and deep-seated trust in UK business,” said Gareth Hird, a director of McBains Cooper.

“Currency values against sterling mean foreign investors, and wealth and pension funds, are buying up trophy assets, prime London stock, high-end residential properties and commercial sites. This is in the knowledge that not only are they getting a relative currency-value-impacted bargain on restricted-supply property assets, but their currency play means that as soon as UK interest rates start to rise, so too does the value of sterling. It’s a double property investment whammy.

“In troubled times we see a rush to the blue chip shares, and while property investment as a whole across the UK is relatively flat, the ‘old world’ is a stable investment environment and offers the prospect of strong, focussed and localised returns for investors hunting down the trophy assets.

“This is largely driven by London’s unassailable status as a global city – a few square miles of an economy within an economy – and the advantages its cultural diversity bring. Middle Eastern, Far Eastern and Russian investors feel comfortable in London, both in terms of a place to live and a place to do business.

“The key is that there is no dramatic escalation in deals; the environment is of consistency - and has been for many months – with London being perhaps one of a handful of global gilt investment property cities, but which is also impacted and influenced by currency, but, crucially, has a foundation of business integrity that outdates most of the rest of the world’s major localised economies.

“However, rumblings about UK interest rate rises are beginning to instil some cautious urgency.”

McBains Cooper has been involved in due-diligence and pre-acquisition work on a number of deals, but has also been involved in project management of development projects including super-high-end residential properties aimed at the buyers being targeted by the acquiring and investing pension and wealth funds.

“We’ve come to understand the culture and demands of many of the target audiences, and have consequently been involved in some incredibly high-quality developments, some of which are not even obviously marketed because there is such a specific and contained target audience,” said Gareth Hird.

“But what we have noticed is that in many of these high-end properties, especially those which include a number of self-contained residences - there can be a wide array of styles and designs based on very specific demands. While one cultural group will want ultimate ‘traditional palatial’, others will want almost unimaginably cutting-edge technology.

“The common factor is that their background is rarely British or European.”

Ends

Further information:

Iain Macauley

07788 978800 im@pressrelations.co.uk

www.mcbainscooper.com

Notes.

McBains Cooper

McBains Cooper is an inter-discipline consultancy, specialising in property, infrastructure and construction, offering a wide range of consulting and design services including architectural, aesthetic or technical design, problem solving, budget management, facilities management, health and safety, sustainability consultancy and on-the-ground civil engineering. Driving and supporting projects ranging from minor works to major contracts worth more than £100 million, McBains Cooper operates across a variety of sectors throughout the UK, Europe and Latin America. McBains Cooper is committed to environmental, social and economic sustainable development and their integrated approach means they deliver effective, award-winning solutions to their clients. The Group employs 150 people. McBains Cooper has regional headquarters in London (head office), Birmingham, Glasgow, Leeds, Manchester, Oxford, Windsor, Lima (Peru), Miami and Mexico, with associate offices in Belfast and Dublin. www.mcbainscooper.com