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Components That Make London Stand Out: Global Financial Centre

London stands out as a global financial center that attracts global capital and leading enterprises due to its top ranking position. It has high liquidity and an exit strategy for investors even in difficult markets. It has a large stock of quality real estate from major occupiers and typically longer lease lengths than other UK markets. While freehold is preferred, experienced overseas investors accept leasehold structures. London has transparent real estate markets due to extensive research, data, and industry scrutiny. It also benefits from consistent professional advice globally and an investor-friendly tax regime. Additional strengths include its currency, cultural links, quality of life, and use of the English language.

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25 views

Components That Make London Stand Out: Global Financial Centre

London stands out as a global financial center that attracts global capital and leading enterprises due to its top ranking position. It has high liquidity and an exit strategy for investors even in difficult markets. It has a large stock of quality real estate from major occupiers and typically longer lease lengths than other UK markets. While freehold is preferred, experienced overseas investors accept leasehold structures. London has transparent real estate markets due to extensive research, data, and industry scrutiny. It also benefits from consistent professional advice globally and an investor-friendly tax regime. Additional strengths include its currency, cultural links, quality of life, and use of the English language.

Uploaded by

abhishekniift
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Components that make London

stand out
Global Financial Centre

Position as a top financial center that is fit for purpose for global occupiers
Exposure to financial & business services increases market volatility
its top ranking position undoubtedly channels global capital and attracts leading global
enterprise

Liquidity

Even in the worst market conditions, there is an exit strategy for investors.
perceived as a mature and transparent market, making it an attractive investor destination

Stock

London is the biggest market in Europe there is quality real estate stock readily available, with
new leases to high caliber occupiers

Lease Lengths

Institutional nature of UK real estate has created an investment market geared towards the
investor.
Leases are typically longer than for the rest of the UK, and in many cases secured on a better
quality of building than in other global markets

Cont
Tenure
Freehold is the most desired tenure for many, but more experienced overseas investors are
embracing the leasehold structure

Transparency
Independent research, data and industry scrutiny from the press, advisors and equity analysts
all serve to create a very transparent and comprehensible market.
The Jones Lang LaSalle Transparency index ranks the UK as the 3rd most transparent real
estate market globally

Professional Advice
the law firms and surveying practices operating in London often come with a platform which
enables a consistent level of advice across the globe.
In such a competitive market it is also a source of comfort that there is no monopolistic practice

Tax
UK investment offers an investor-friendly regulatory framework and tax regime to overseas
investors, with no barriers to real estate ownership and to the transfer of funds in and out of
the country

Cont
Currency

The devaluation of Sterling after the 2008 global economic crisis made the
price of UK real estate even more competitive
With recent uncertainty in the Eurozone, Sterling has increased its appeal to
many global investors

Familiarity

In London, this has sometimes rather patronizingly been described as a


monopoly board mentality, but in reality it derives from investors already
having strong cultural (or even colonial) links with London.
as well as a working knowledge of assets and strategy, either directly or from
contemporaries

Heritage, Culture & Language

multi-cultural London, heritage, quality of life (especially for higher net worths)
and the English language make London an attractive place to invest, work and
live

Top UK based luxury brands


financial performance
FY14
luxury
goods
sales
(US$mi
l

FY14
total
revenu
e
(US$mi
l)

FY14
luxury
goods
sales
growth

FY14
net
profit
margin

FY1214
luxury
goods
sales
CAGR

Market
cap*
(US$mi
l)

3,160

3,160

7.6%

13.0%

15.4%

10359

689

689

11.5%

11.2%

25.5%

2865

506

506

4.9%

3.8%

8.1%

2170

Compan
y name

Selection of
luxury brand

Burberry
Group plc

Burberry Prorsum,
Burberry London,
Burberry Brit

Graff
Diamond
s Limited

Graff

Aurum
Holdings
Limited

Watches of
Switzerland,
Mappin & Webb,
Goldsmiths

Paul
Smith
Ltd.

Paul Smith

320

320

0.0%

6.6%

8.5%

1020

Mulberry
Group Plc

Mulberry

261

261

-2.0%

11.3%

16.5%

687

Future perspective
UK luxury sector forecast to almost double in
sizeover the next five years from 6.6 billion in
2012 to 12.2 billion in 2017
The UK luxury sector set to grow 12% in 2015 to
9.4 billion
British luxury brands remain optimistic about the
outlook with 83% of brands expecting to see a
rise in sales in 2015
Brazil and India are key target markets for UK
luxury brands looking to expand overseas
Only 16% of brands currently have operations in
Brazil however, after Olympics and World
Cup,52% of brands have an interest in entering
the market

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