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The über rich’s appetite for London property was growing fast, forcing prices higher and higher as they snapped up super-prime properties, proof that globalisation knew no limits. At Guthrie Plimpton's, Sarah Kavanagh knew it, she was in a position to, she was at the very heart that encouraged the scramble. Sarah had moved up the ladder, in three or four years she had become one of the real estate agent’s leading consultants, her domain prime property, just a notch away from super-prime; that is properties from ten million pounds upwards. She had been promoted following her success in Dominica, where she was accredited with the successful introduction of the Emerald Pool II development to Chinese investors. She had hit the headlines after being photographed shaking the hand of the new Chinese Premier on his first visit overseas … surprisingly to the Caribbean.
London had a lot going for it, there was political stability, the City, the English language, a multi-ethnic society, a fair degree of religious tolerance and of course outstanding fine property like for example Brompton Square, where a six-bedroom house could sell for twenty five million pounds up.
As London’s poor looked on, as paradoxically most such homes were occupied a mere four to six weeks a year by their owners, who not satisfied with their magnificent properties, invested in expanding them downwards: iceberg homes, and not only beneath the house itself, but also under the garden and outbuildings, with the addition of ultramodern kitchens, garages, gymnasiums, cinemas and even swimming pools.
The über rich could spend anything between ten and one hundred million pounds for a London home with the record reaching over two hundred million. They came from Russia, the Middle East, and from France, Spain and astonishingly crisis stricken Greece, with a quarter of them part of the British plutocracy.
London was also a top destination for investment in commercial property. Six years after the crash, sales had returned to pre-crisis levels. It was a good time for INI’s property fund. London was a safe haven and compared to continental Europe the attraction of phenomenal gains drew investors from all over the world.
The slowing down of the Chinese economy had become a reality confirmed by the China Securities Journal in a front page editorial. The journal announced capital inflows had slowed with investors turning away from emerging markets as the US the dollar strengthened with the Fed speaking of an end to its policy of quantitative easing.
China was threatened not only by significant capital outflows, but also its growing debt burden, which had passed the two hundred and twenty percent GDP mark. Any deleveraging by Chinese banks would have a serious impact on the country’s economy, transforming the hoped for soft landing into something much harder than planned.
Cornucopia Page 14
