Why do Chinese investors continue to target the capital of the Northern Powerhouse when it comes to property investment?
Recently, Manchester has seen investments from almost everywhere around the world; North America, Europe and Asia. There is, however, a particular interest from investors from China.
The Beijing Construction Engineering Group (BCEG) has invested £12m in a 20% share in the giant Manchester Airport development. On top of that, they’re also investing in two other major developments across Manchester.
Furthermore, the Peterson Group is going to invest £300m into the Great Northern Warehouse with plans to re-invent the side into a world-class residential, leisure and commercial district.
When it comes down to business, large-scale corporates like Huawei and AVIC have created significant relationships with the University of Manchester, turning the city into a place of great interest for Chinese money and business.
First things first, Manchester offers outstanding yields compared to those offered by other major cities in the UK like London (the comparison stands at round 4% in London to almost 7% in Manchester).
Secondly, Manchester is growing, And it’s growing fast. The city is planning to add 227,000 homes and 200,000 jobs to its portfolio by the end of 2035. An ambitious plan with people behind it doing everything they can to make it come true.
And finally, Manchester is becoming more and more popular. Whether it’s popularity with renters who actively choose to move away from London to live a cheaper, better life up north or popularity with the world’s big leader. Less than a year ago, China’s president Xi Jinping visited Manchester during his short trip to the UK. This was his first visit to the island in over a decade.
Additionally, there is one other institution to mention: the Manchester-China-Forum which is creating great connections between the two.
So, once you’ve added all of this up and considered the current currency play with a very weak pound, it might not come as a giant surprise that most investors in China might be well aware of Manchester. Or at least they should be.