London Remains Top Choice For Growth For Overseas Business Investors

15th January 2010

LONDON REMAINS TOP CHOICE FOR GROWTH FOR OVERSEAS BUSINESS INVESTORS

70% of all inward investment in the UK capital driven by SME’s

Small and medium sized enterprises are continuing to drive new inward investment in London, having made up almost three quarters of all new business investment in the UK capital in 2009. According to recent figures released by Think London, the official foreign direct investment agency for London, SME’s accounted for 70% of all new inward investment last year.

The number of overseas SME’s expanding their operations in London over the last 12 months has in part been facilitated by Think London’s ‘Touchdown London’ service. Offered in conjunction with serviced office provider Avanta, Touchdown London enables overseas companies to take advantage of up to 12 months free office space and facilities, along with the use of a dedicated advisor to support firms through the process of establishing a presence in the UK’s capital.

Since the start of 2009 more than 35 new overseas businesses have benefitted from the Touchdown London offer and been able to set up operations in London. Early survey results from a sample of Touchdown London clients indicate “Cutting the time to market” and “Reducing the cost of initial market entry” as being two of the most important factors in their decision to try the Touchdown London initiative.

The survey also revealed that 8 out of 10 companies are fully operational in London less than two weeks after signing. Many claimed that as a result of the scheme they had saved between 1-3 months of executive time that otherwise would have been spent looking for suitable office accommodation.

The Mayor of London, Boris Johnson, said: “The opportunities for overseas businesses in the capital are unparalleled. London offers a combination of a highly skilled workforce, lower commercial property costs and a diverse social and leisure scene making this one of the most exciting, innovative and successful business locations in the world. We are investing heavily in our infrastructure and with the London Olympics around the corner there never has been a better time to come to London."

Michael Charlton, Chief Executive of Think London, added: “When you combine this with the depreciation of Sterling, it seems that there has never been a better time for overseas businesses to invest in London. The capital’s flexibility as a business location makes it an appealing option for SME’s looking to tap into new growth markets, and the fact that our investment figures for 2009 have remained robust despite the difficult economic climate offers a clear sign of London’s resilience.”

David Alberto, Managing Director of Avanta, the London-focused serviced office space provider, said: “We have witnessed a tremendous growth in the number of international businesses taking space in our centres during 2009 and, as a result of supporting the Think London initiative for more than two years, it is satisfying to see the successes and benefits that the scheme has already provided.”