Arab investors 'attracted to UK commercial property sector'

Investors from the oil-rich Middle East are being increasingly drawn to the UK's commercial property sector, it has been claimed.

Speaking to the Financial Times, Fadi Tabbara, chief investment officer at Jadwa Investment, said: "The pound exchange rate is low, which makes investment in the UK inviting, and the legal structure is simple and transparent."

The comments came as Jadwa, a company part-owned by the Saudi royal family, and CIT, a European property investor, confirmed the acquisition of the King's Reach Tower on London's south bank for £60 million. An additional £200 million has been earmarked to develop the project.

Jadwa also outlined plans to invest a further £300 million or more in mixed-use, residential and commercial property in the UK.

"For us, London is the capital of the world. It's a lot closer than the US, and even the retail sector is often in tune to Arab culture," Mr Tabbara told the FT.

Earlier this year, the CIT Jadwa UK Special Opportunities Fund bought the Princes Quay Shopping Centre in Hull for £71 million.