'£3.5bn spent on London commercial property by SWFs'

The central London commercial property market has received £3.5 billion of investment from sovereign wealth funds (SWFs) during the last decade, research claims.

Property services firm King Sturge revealed the figure yesterday at the Investment Property Databank annual investment conference in Berlin, Property Week reports.

Research partner Angus McIntosh told delegates that Middle Eastern investors have spent a total of £7 billion on commercial property in the capital since 1998 - half of which came from SWFs.

"Some of this has been sharia compliant. Much of it has been spent on offices, retail and hotels," he said.

The funds will target infrastructure and leisure schemes in the future, Mr McIntosh added.

Using figures from the Sovereign Wealth Fund Institute and JP Morgan, the expert said the total amount held in SWFs currently totals $3.6 trillion (£1.8 trillion).

SWFs have grown by an average of 24 per cent each year over the past three years, according to Global Insight.

Martin Slowe Property Services are Commercial Property Consultants offering a full range of Commercial Property Services.