BREXIT 1 – Exchange Rate Bonanza
The weaker pound has highlighted a range of investment opportunities in the UK.
Commercial property is one of the investment opportunities where the low value of the pound means great deals are available. You would be following in the footsteps of Sovereign wealth funds such as Singapore’s GIC fund, Norway’s Government Pension Fund Global and Qatar investments who have all weighed into the UK commercial property market now that sterling has devalued some 15%.
Its not for everyone though as the political uncertainty surrounding Brexit has dampened some investors outlook.
But its not just property that has become affordable, the FTSE 100, up 2% on pre Brexit vote levels, is also a target. Shares in larger international companies that trade outside the UK have also benefitted from a weaker sterling and so their value is on the increase.
The recent deal for ARM by the Japanese business Softbank, heralded a wave of overseas interest from Asia as Sterling devalued some 30% against the Japanese Yen and 11% against the Chinese Yuan. Companies with sterling denominated shares and significant amounts of non sterling revenue are particularly interesting.
Britsh meat exports has been a surprising beneficiary of the UK’s currencies slump. Severe flooding in China has devastated much of the agriculture sector and has resulted in a 30% increase in the sale of Pork from the UK to China.
It seems that if you want to buy British, whether commercial property, shares, strategic M&A deals, or meat (!) Brexit has created the perfect opportunity to do it right now.
To discuss further, please contact Glenn Gates.
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