The European Directive on Financial Regulations
Financial Regulations Are Affecting London Businesses
It’s no great surprise that the hedge funds and private equity companies are not impressed with the idea of the proposed European directive on financial regulation. They believe that this will unnecessarily hamper their method of doing business.
From a property point of view, it’s a double edged sword. Such companies have been very keen on occupying offices in the general Berkeley Square area, which also includes Curzon Street, Bruton Street and Grosvenor Street.
If in addition to reduction in office take up caused by the credit crunch, these companies decide or are forced to go to countries other than the UK, the high rents in this locality will ineviably drop. As the competition for London office spaces declines, the way will be paved for other occupiers to occupy these offices.
Unfortunately, that same occupier may have part of his pension fund invested in commercial property investments in the area, which will not grow in value at the same rate as they would otherwise have done. These will be just two of the effects if there is such an exodus from these Central London offices.
About Michael Fraser
As a long term player in this sophisticated market, Michael has built up extensive knowledge of the locations, the owners, the rental values, and possibly most importantly, has developed very solid contacts with the other agents or brokers working in the hub of the office market, which gives him a a considerable advantage when both trying to source suitable office space and also when trying to negotiate the best possible terms for the end user.
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