UK emerges as Australian investment hotspot

The UK has cemented its place as a destination of choice for Australian investors.

High-profile Australian brands such as Macquarie Bank and Servcorp have led a steady stream of Foreign Direct Investment (FDI) into the UK, as investors seeking entry into European markets take advantage of the UK’s reputation as a top destination for headquarters.

The dominance of UK cities in Europe has resulted in 277 companies relocating their international operations to Bristol, Manchester, London and Birmingham, resulting in the UK playing home to more European headquarters than all other EU economies combined.

A total of 67 Australian projects are currently taking place in the UK, among them office provider Servcorp’s plans to invest more than AU $17 million to expand in London and Europe following the opening of its first offices in the capital earlier this year.

While many rival economies continue to recover slowly under austerity measures introduced by governments across the globe, the Australian dollar, which has escaped comparatively unscathed from the economic downturn, continues to be invested in the UK.

Director of UK Trade & Investment in Australia Paul Noon’s view is that key location factors have made the UK stand out against rival European countries throughout the recession.

"The continued economic strength of the Australian economy and the Aussie dollar, as well as the UK's overall attractiveness as a destination for FDI, means it's a great time for Aussie businesses in the UK," he said.

Prime Minister David Cameron echoed Mr Noon’s comments, saying the establishment of the UK as a top investment destination for foreign companies was a key part of the economy’s long-term recovery. "Attracting and retaining inward investment is hugely important for our economic recovery," he said.

"We are determined to deliver the pro-business environment investors need, getting the deficit down to create certainty and stability, cutting business taxes, delivering flexible employment and cutting red tape and regulation.”

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