Brexit has brought a lot of trouble to London financiers, in fact, the country’s economy is transforming into a new rhythm of life, where there are no common borders with the former partners inside the European Union. Recent month, Brexit rises demand for flexible office space in London.
Brexit is Brexit, and this movement changed a lot in the financial life of country and capital. An opulent portfolio of London serviced offices is on sale with a £700m price tag as its private equity owners seek to cash in on rising demand for imposing yet flexible office space in the wake of the UK’s vote to leave the EU.
Queensgate Investments had experienced a “spike in demand” from office tenants seeking short-term space since the Brexit vote, which rises demand for flexible office space in London this autumn.
“We’ve had foreigners coming in because of sterling weakness, and we’ve seen a change in attitude towards occupancy requirements — people are seeking flexibility and shorter lease terms,”
said Jason Kow, chief executive of Queensgate.
Queensgate, which is backed by a series of private family offices, bought LEO — then called Executive Offices Group — from Morgan Stanley for about £260m in 2013, and says it has since added new properties, refurbished buildings and streamlined its operations.
Deloitte Real Estate reported in 2015 that the serviced office market in London had grown by 67 per cent in a decade to comprise 5m square feet. Another largest listed player Regus (market capitalisation of £2.5bn) running serviced offices, but WeWork was valued in March at $16bn (£12.9bn at current exchange rates).