THE UPS AND DOWNS
OF DOCKS INVESTORS
Investors have made £millions from the booming London Docklands property market that, at its lowest point, brought the world’s biggest property firm to its knees. To lose £800M ($2.1B) was a shock for Canary Wharf’s owners; to recover and fuel the current buoyant market is a reflection of the world-wide investment interest in the 55 miles of waterside that is Europe’s fastest growing live/work area.

After nearly 20 years of regeneration, Docklands has now reached critical mass with some £400M (£1B) a year ongoing investment bringing the total public and private sector investment to £12B ($31.8B). There are still a few development opportunities with 100 percent tax breaks in the former Enterprise Zone district that covered most of the Isle of Dogs. New opportunities are emerging on watersides like Royal Docklands where the biggest landowner is the Government.

Investment Guidelines Decide which of the five Docklands Districts are best for you. Decide on capital growth, income or a balance between them. Identify a suitable property(s) within your budget. Waterside properties warrant more rent, but cost 25% more. Condos with leisure facilities often produce better yields. Check with local property professional the price/rental is right. Have a local property pro manage the purchase(s) for you. Appoint a solicitor for the purchase - get recommendation. Take over property and get pro help with snagging etc. Arrange repairs, decoration and furnishings if resale property Prepare the property(s) for occupation. Check out prospective tenants very carefully + 192.com. Better rental returns from Docklands fringes like Bow E1.

Within the private residential sector, we have heard of one shrewd buyer at the still-building Britannia Village in the Royal Victoria Dock who’s just sold for nearly double his purchase price — a good sign for when Royal Docklands really takes off. Elsewhere, another investor saw a £2M-plus increase on his portfolio, as revealed by his mortgagor bank, after just 100 days.

He’s very grateful for our advice on where to put his money and the shared champagne tastes all the better for it. Our latest investment portfolio includes good investment opportunities across Docklands where new transport links have moved the geography for the wouldbe investor.

However, there are early investors in some districts of the eight square miles of once derelict Docks who lost their shirts and homebuyers who have been in negative equity for much of the last decade. The last of them, in Surrey Quays, achieved their original price only in the last quarter of 1999.

Other investors have been embroiled in legalities with developers, freeholders and management companies. One developer built an upmarket block with a long lost river running through the basement and installed unsafe electricals. Residents were decamped.

Things like that happen in the fiery, fast-track race for profit that is London Docklands. If you are buying or selling residential or commercial property London Docklands Online can help. If you have a site to sell send us the details - we are in touch with all the high profile property players and a lot of important low profile firms as well.

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