Kuwaiti investor spends £39m on London office building

International property investors are still choosing to make debut London purchases despite political uncertainty, it emerged on Wednesday as a Kuwaiti firm spent £39 million in the City.

Soor Capital said it has agreed its first UK deal with the acquisition of office building 23-26 Austin Friars. Abdulaziz Alduweesh, a partner at the firm, said the company is attracted to long-term income and “strong property fundamentals”.

The 55,850 square feet block, which was bought from a private client of agent JLL, is fully-let to Avanta Serviced Office Group, part of IWG. It is a short walk from Liverpool Street station.

The deal comes despite wider jitters in the commercial property market about rental growth prospects and tenant demand after Britain leaves the EU.

Hassan Farran, a director in the cross-border investment team at Savills, which advised the buyer, said there has been an uptick in London sales to Middle Eastern companies, which have recently been enticed by the weaker pound.

Farran added: “These investors are attracted to London’s liquidity and comparative value, and the resilience London’s investment market continues to demonstrate.”

His company predicts Middle Eastern investment in London commercial property should reach £1.38 billion in 2018. That is up 30% from last year.