Two announcements today have highlighted the binary nature of corporate responses in Asia to the UK's vote to leave the EU. Whilst Singapore's United Overseas Bank imposed a temporary suspension on approving mortgages for property in London, the executive chairman of City Developments Limited, one of Singapore's largest property developers, announced that he was actively looking to pick up properties in the UK and Europe in the post-Brexit environment. These contrasting views could be said to highlight the difference between an institutional and an entrepreneurial view, but both reactions are entirely justifiable in the current circumstances where risks and uncertainty battle come up against opportunity.
Our own experience has been that many clients have called us to discuss their current projects and seek a view on the best course of action. In practice, this hinges on the precise circumstances of each deal or development, as numerous factors may sway a decision to bet, hold or fold. Almost one week on from the UK's vote, markets are starting to settle back down from their initial reaction, but the direction of travel is a complete unknown. We would advise clients to proceed with caution, but to maintain a keen commercial awareness of new business opportunities.
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