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A Bloomberg article noted that investors from Singapore to Norway are now betting in London commercial projects with developers as opposed to placing investments in property funds. The report said that the shift was bold considering that foreign real property investors are taking more risks to increase their returns as the market in the UK recovers.

Among the biggest property investors seen are pensions, insurers and sovereign-wealth investors, and have struck partnerships with companies that include Great Portland Estates Plc and Land Securities Group Plc to develop the most desirable areas in London and acquire shopping malls and offices.

Initially, the news agency said investors were careful placing their bets by going through broad-based property funds at the height of the financial crisis, which resulted to lower but safe returns as oppose to betting in direct real estate holdings. Recently, institutions such as Canada Pension Plan Investment Board, GIC Pte, the Singapore sovereign-wealth fund, and Norges Bank Investment Management are forming strategic ventures with commercial property developers in the UK as real estate prices are rising.

UK real estate investment trust Land Securities chief financial officer Martin Greenslade said over the phone, "We're seeing funds that are interested in higher-risk, higher-return deals. Getting the skill-set on the ground is difficult, so you need a partner."

Bloomberg said the joint ventures are a win-win strategy for both parties. Foreign investors will be introduced to the British market and ongoing project knowledge, while domestic companies will have access to new sources of funding while retaining control of their property developments.

Joint ventures between foreign investors and domestic developers in the UK tend to extend their original agreement once deemed successful, said the report. In a November 14 presentation, Great Portland said investors had set aside GBP25 billion or USD41 billion to purchase commercial properties in London, which would outstrip the GBP2.3 billion of real estate for sale. It also added that for one, it had spent GBP54 billion to renovate a prime office space in the West End, and could gain 67% should it choose to put the renovated property on auction.