German funds to buy City offices - commercial mortgages

09 January 2008

German open-ended property funds are returning to London''s commercial property market, according to reports.

It is expected that the European property investment group will re-enter the commercial property market spending more than £1 billion.

KanAm, one of the funds, is thought to be close to a £120 million deal to buy British Land''s Plantation Place South.

It is thought that German investors will once again be drawn to City investment following the deal, website thebusiness.co.uk reports.

"Our calculation is that the funds have taken in £4.4 billion over the last 12 months. We believe that up to a third of this could end up in the UK market."

Increased investment could drive up prices, meaning it might be a good time to secure commercial mortgages on a property.