CANNES, FRANCE—Seems that the bad news is the good news.  Foreign investors—namely those from Asia—are circumventing the US and heading to core European markets such as London and Paris.  That at least was the upshot of an Asian investment press conference held here on the first day of MIPIM.

“We’ll look at New York and Los Angeles,” Francis Li, vice chairman, Greater China, for DTZ, said in response to a question posed by this reporter. “But after a 50% tax hit, we are driven away. The UK has a lower tax system.”

In addition to a more favorable tax structure, “Crisis brings opportunity,” said Justin Chiu, executive director of Chung Kong Holdings. “The European governments have not done enough to solve the debt crisis,” providing an ample opportunity for ground-floor investments.  The implication seemed to be that the economic worst was over for the US and the best opportunities have shifted elsewhere.  

In an analysis of the UK market, the Asian theories were borne out as panelists reported that while the market has been making strides, “office values are still roughly 30% off of peak,” according to Mark Sales, managing director of Henderson Global Investors. This was after a 5% drop in 2011.

The international money that is coming into the UK comes in two forms, according to C&W partner Andrew Thomas: “Those seeking returns and those seeking upside opportunity.” He stated that the second option was where the “intelligent” money was.