Property developer Mitsubishi Estate will invest UK£800 million (A$1.64 billion) into a new creative industries hub in the United Kingdom, as Japanese investors shift towards the UK.
Mitsubishi Estate will develop a former ITV Studio site on London’s Southbank into 600,000 square feet of commercial and cultural spaces, according to the UK government.
“Mitsubishi Estate has been investing in London since 1985, and today’s milestone reflects our long-term confidence in the city and in the enduring partnership between Japan and the U.K.,” said the company’s senior executive officer Masanori Iwase.
The site will add 4,000 new jobs, the UK government said. It will include new offices, cultural venues, galleries, and presentation spaces.
“This huge new investment is a huge vote of confidence in the UK as well as a major boost for our thriving creative industries, which we’re determined to make the best in the world as part of our modern Industrial Strategy and decade of national renewal,” said U.K. Minister for Investment Jason Stockwood.
The investment comes as Mitsubishi Estate rethinks its allocations in the U.S., with Iwase saying Japanese investors are shifting towards Europe amid an uncertain U.S. market. About 51% of Mitsubishi Estate’s capital is currently allocated to the U.S., with 27% in Asia and 22% in Europe.
Japanese investors deployed more than £1.6 billion into the U.K. real estate market from 2023 to 2025’s first half, according to MSCI Real Capital Analytics.
Japan’s Sumitomo Corporation agreed to invest £7.5 billion into U.K. infrastructure and energy projects in July, and Tokyo-based Mitsui Fudosan committed to developing a £1.1 billion extension to the British Library in March.
The two countries also signed a memorandum of understanding in July to establish a formal framework that would accelerate U.K. investment in Japan.
The UK’s trade with Japan has been growing, with its value increasing by 3.5% in the four quarters to the end of Q1 2025.
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