I see currency intelligent, you know people feel the euro is cheap at the moment if your dollar or sterling based, so you would invest in Europe for the currency overlay ground I judge the UK UK I’m in London is, as Johnny knows, merely captivating an amazing disproportionate In a mode uppercase, you memorandum, I intend it’s just remarkable, but I think that will continue and rents are apparently pushing on very strongly in london metropolitan, midtown west objective, you are well aware, place and retail. I conceive the regions are patently also rear. Ating secondaries rerating to Prime furnishes, UK is probably in a good arrangement and the economy’s recovering faster than I conceive, virtually any other area of Europe.
I see when you’re looking at European economies, it’s a very mixed picture and you have the you know. You have the ligament investors, who had sort of the approval tourists who mostly go round. You know looking at the disorganization in distress and you are well aware, the capital sells are always ahead of the underlying economy and occupier fundamentals and there you know they were in the UK. In 2010 they were sort of in Spain in 2011. You know they’re sort of in Portugal and Italy. Now you know, will they end up in Cyprus, Turkey and Greece? You know who knows but, but if you, if you follow, you know pimco oak tree. You know these large-scale attachment people and that’s that’s what they do and they do it very cleverly and intelligently, but it’s a macro. It’S a macro represent. So I reckon I see I’m everything she was. I mean you know, there’s a lot of fund for European real estate from call to opportunistic, specially opportunistic.
I think there’s more there’s more and more fund coming into mpls and to stress and Europe at the moment. I considered that I imply London’s in an extraordinary plaza. In Europe and I think that it is, it’s come out as a certainly world metropoli, and you liken it now to you know to New York, Hong kong residents, Tokyo, and I recall, because of that, it lure capital. You know we’re looking at a situation today where perhaps the market is eighty percent foreign capital. You know that’s a huge dominance of foreign musicians with forever. You know every week got new money coming into the market, so it’s fueled by new money. I meditate I written as right. You know you’re, seeing that new money coming into London, but it’s also looking at other European centres at the same time. But there’s no question that you know London is an easy acquire. If you’re major investments committee and you’re looking to say well, you know let’s diversify our funds to another continent to another city. London is the it’s an easy home to go for all the reasons you know in terms of efficiency and the scale of the market.
So I think that you know some of the fact you talked about with the Chinese and the insurance companies. You know some of the things we see you know what we so far have received. Is the sort of tier 1 firms come into the market? As you will know, in China there was still rank 2 tier 3 and there’s a huge raft of insurance and then other kinds of companies that we think will come, perhaps not in the same scale, but I think they’ll add fuel to the market. You know I meditate London will still be at the heart of that, but perhaps you’re going to see you know a movement out beyond the ultimate core, because pricing became very. You know truly quite difficult for some in terms of driving returns. Then you’ve got to look at why why they’re coming and I think you know if you look at Taiwanese prime times at 2, 2 and a quarter percent, you know three and a half percentage in the West Boundary looks pretty good, and so you know you can See why dat? Why than why? That’S happening!