Will referendum vote change the vibe at IFB2016?

Delegates included representatives of the UKTI’s Regeneration Investment Organisation (“RIO” – not to be confused with the Olympics!) and officials and business people from the Chinese city of Chengdu, in addition to UK Banks, real estate professionals and developers. RIO was set up to promote UK opportunities for foreign investors and development partners, with schemes in many major northern cities.

On Wednesday, I took part in a panel chaired by Paul Marsh of RIO, part of which focussed on attracting overseas investors. It has been a pretty common theme amongst real estate investors and professionals that a vote to leave the EU would be bad for investment in the real estate market, so the referendum result is going to cause real uncertainty in the market over the coming months.

However, after months of Europe centric debate, this event has been a timely reminder of the UK’s relationships outside of the EU. Back in September 2015, the Chancellor George Osborne said that the UK and China are entering a “golden era of economic cooperation”.  

The Chancellor had been speaking in Chengdu, where he was encouraging foreign investors to invest in UK regeneration schemes, saying “from Liverpool to Newcastle we are opening our doors to investment that will not only help us to grow and create jobs but will allow us to build infrastructure to rival any region in the world”.

Now we are entering a new chapter outside of the EU, it is positive to hear, from chatting to some of the visitors from Chengdu, that they did not think the vote would impact their decision to invest in the UK.

The Estates Gazette hosted a “City Talks” panel focusing on Liverpool and it’s offering to real estate investors and its role in the Northern Powerhouse. Melanie Leech, chief executive of the British Property Federation discussed what UK property investors are looking for in a city or region: a clear vision from the public sector leaders, building on city’s assets and good infrastructure. Melanie believes Liverpool has these and so the current opportunities for investment are positive.

Philip Rooney, real estate partner at DLA Piper and also a guest on the panel, added to this saying that the new deep water port is a game changer for the city. The new port means the big super tankers that come from the Panama canal can now dock in Liverpool rather than heading for the south of the UK. This opens up the city to bigger importing and exporting opportunities, reminiscent of its successful maritime past. Post EU the significance of this trading post could become more important.

John Prescott was the key speaker at the International Property Forum dinner on the Tuesday night. The focus of his speech was the Northern Powerhouse and how important it is that this stretches from Liverpool to Hull, not just Manchester to Leeds. The potential of the Powerhouse is huge, but Mr Prescott reminded us that it needs the political will of each city and region to make it work.