London's East Oxford Street sees 66.7% rise in Hong Kong ownership since 2014
According to international real estate advisor Savills, they account for 21.1% of non-UK owned stores.
While Hong Kong investors have traditionally favoured West Oxford Street, the figures show that confidence based on occupational demand linked to Crossrail has seen Hong Kong ownership on East Oxford Street rise by 66.7% since December 2014.
As a result, Hong Kong store ownership is now proportionally higher to the East of Oxford Circus than the West, at 22.7% versus 20% of non-UK owned stores respectively. Savills said this mirrors the changes in international investment seen across the street as a whole.
While 53.4% of stores on West Oxford Street are non-UK owned, the biggest uplift has been on East Oxford Street where international ownership has risen 22.2% to 41.9% since December 2014. After Hong Kong, the next largest share of non-UK owned stores on the street is held by investors from Ireland at 15.8%, Spain at 14.9%, Abu Dhabi at 8.8% and Qatar at 7.9%.
‘Traditional’ overseas investors have still been particularly active on Oxford Street in recent years, according to Savills. There has also been a considerable rise in ownership by private international investors whose wealth derives from retail, such as Ponte Gadea, Holch Povlsens and Ramsbury Estates.
Sam Foyle, Oxford Street specialist at Savills, said: “The internationalisation of Oxford Street’s retail offer has gone hand in hand with that of its ownership. What is really interesting is the increasing appeal of the eastern end of Oxford Street to international buyers. Obviously the Crossrail story is compelling, but factor in the possible pedestrianisation and the volume of new office development envisaged for that end of the street, and it is apparent that the footfall and spend dynamics is set to receive a real boost. This is attracting the retailers and in turn the investors.”
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