London's Big Deal
CC Land Holdings Ltd., backed by a Hong Kong property investor, has purchased the Leadenhall Building in London for $1.42 billion from the British Land PLC and Oxford Properties Group. Known as the Cheesegrater for its triangular shape, Leadenhall is the tallest tower in London's financial district. Since Brexit, investors from China and Hong Kong are snapping up commercial properties in London because the yuan is up 12 percent versus the British pound, while its value has declined compared to the U.S. dollar. These investors have bought more than $3.6 billion of central London property in 2016, more than investors from the U.S. or Europe, according to JLL.
Global Markets to Watch
2017 is expected to be a year of stronger economic growth but with greater policy uncertainty. The global economic cycle, which is in the mid-to-late stage, has been improved by fiscal stimulus in China. More government spending is on its way, especially in the U.S., spurring more economic growth. Key risks involve cooling trade relations between the U.S. and China; Brexit; and political elections in Europe, according to CBRE Research.