The huge amounts of surplus monies building up in the Arab oil exporting countries are already beginning to find their way back to many of the industrialised Western countries who are having to pay the greatly increased cost of oil.
GV PAN FROM River to high rise building "La Defense" in Paris.
GV TILT UP Building.
GV TILT UP FROM Sign "Le Manhattan" TO building under construction.
GVs "Manhatten" building under construction. (4 shots)
LV PAN FROM Manhattan building TO La Defense.
GV PAN FROM Street scene TO Britannia house. (3 shots)
GV AND CU Commercial Union Headquarters. (2 shots)
GV TILT UP Commercial Union Building.
GV TILT IBM Building. (2 shots)
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Background: The huge amounts of surplus monies building up in the Arab oil exporting countries are already beginning to find their way back to many of the industrialised Western countries who are having to pay the greatly increased cost of oil. The excess money is finding its way back in the form of investments, and both in Paris and London, property is one of the investments proving most attractive to the Sheikhs.
In Paris, negotiations are currently underway between the developer of four large tower blocks in a north-west district of the city, and a potential Arab buyer. The developer has confirmed that a deal is under discussion for the largest of the four towers, but he will not give the name of the Emirate involved. All he will say is that it is a government, not an individual.
Rumour has it that the customer is probably Abu Dhabi, but other possible buyers are Kuwait and Qatar. The tower block under consideration is known as the "Manhattan Tower", which is 27 storeys high, and which was designed for offices rather than for flats. The price would be in the region of nearly 500 million francs (about 41 million pounds sterling).
One of the other three blocks in the development may also be sold to an Arab buyer, but to an individual, not a Government. It is understood he plans to turn it into a hotel.
In Britain, it is estimated that already this year about one hundred million pounds (240 million dollars) has already been spent by Arab investors in properties throughout the country. One of the most active investors has been Evenrealm, a nominee company believed to be investing on behalf of the Shah of Iran.
Last month it was reported to have spent over a million pounds (2.4 million dollars) on buying the freehold interest in Britannia House. a 47,000 square foot (43,660 square metres) block of offices opposite the Old Bailey in London. The deal, however, has not yet been confirmed.
In June, Evenrealm paid more than ten million pounds (24 million dollars) for an office block in Rood Lane in the City of London, and a few weeks later acquired blackfriars House in Manchester for 3.5 million pounds (7.2 million dollars). In Birmingham, two office block have been sold n recent months to Arab interest at a hotel cost of 5 million pounds (12 million dollars).
The surplus earnings of the oil-producing countries which have come from the higher oil prices, at present account for a substantial proportion of all foreign-owned sterling in London. But because of the inflow of Arab money, the sterling exchange rate has strengthened since the beginning of the year.