London is still attractive to foreign investors, says Excel Centre boss
The chief executive of the Excel Centre has said foreign investors remain bullish on London despite a recent drop in UK projects.
Jeremy Rees said he thinks the East London-based Excel Centre is a “very good example” of how attractive London is to foreign investment.
“[The Excel] shows what confidence they have and we have in both the live events market as well as London as a proposition overall,” he said.
But a report by EY revealed a UK-wide decline in Foreign Direct Investment (FDI) projects in 2022, with London recording a 24 per cent dip in projects compared to 2021 – its lowest amount in a decade.
Excel is owned by an Abu Dhabi sovereign wealth fund called ADQ, backed by the Crown Prince.
Adnec, a subsidiary of ADQ, made a £320m swoop on the huge complex in 2008, as part of a strategy to diversify its economy away from oil.
According to Rees, ADQ has been “very supportive” of the huge complex that hosts a number of events, including Formula E racing, MCM Comic Con and the London Boat Show.
“They’re really keen to allocate capital,” he said, “and as a business, it’s been really stable and added huge value to London’s economy and to the UK economy.
“It’s been a very symbiotic relationship and one that has been really supportive for London as well,” added Rees, who took the helm at Excel in 2018.
Adnec came under fire in 2020 after it tried to charge the NHS £2m-£3m a month to use the Excel Centre as a temporary hospital during the Covid-19 pandemic. Following this pressure, the company u-turned and provided the NHS access to the Excel free of charge.
It comes as Excel is adding a further 25,000 square metre extension onto its already 100,000 square metre facility, which Rees said will help it to compete on a global platform.
“We’re investing more money than we’ve ever invested,” he said. This year, Excel has plans for an entertainment district along the Thames, hotel ventures, and staff recruitment.
Rees added that Excel is open to investment from new partners too.
“We’re looking really carefully at whether we should be creating a sort of commercial partnership programme, working with key global brands that will add value to our to our brand and vice versa,” he explained.
At the start of February, the Excel Centre will host ICE London, the world’s largest gaming and casino shows.
“That’s not in Las Vegas, and it’s not in Macau, curiously. It’s in London because it’s a really attractive place to trade,” said Rees.
He reckons events like ICE contribute £250m in direct economic impact to London, benefiting hotels and hospitality over the course of the week.
The opening of the Elizabeth Line in 2022 has bolstered footfall at the centre by around 10 per cent. Last year, Rees hailed the purple addition to London’s Underground as “transformational” for the capital.
It means visitors can reach Excel in 15 minutes from central London and 43 minutes from Heathrow.