Olympic opportunities

Think London is London’s official foreign direct investment agency and the expert on doing business in the capital.

The Games are generating huge commercial opportunities for thousands of companies; from construction and manufacturing firms to organisations in catering, merchandising, retail, financial services, media and creative industries. 

For New Zealand companies willing to put in a bid there are 7,000 tier one contracts potentially up for grabs.

“There are 75,000 supply chain projects; the opportunity for foreign companies is huge,” says Schuitemaker.

Michelle Templer, New Zealand Trade and Enterprise’s Trade Commissioner to the UK and Ireland confirms that the process is highly transparent. But she warns: “you cannot expect to win the gold medal in sport just by turning up to the race.”

“The critical factor is the training, coaching and nurturing natural talent.” 

New Zealand Trade and Enterprise (NZTE) is working with organisations like Think London and the London Development Authority to ensure kiwi companies have the best chance of success in their Olympic bids. 

Schuitemaker has just finished a lightening visit to this country, meeting with a number of companies preparing to have a tilt at one of the world’s great cities.

There are many reasons why now is the hour for exporters to focus on London, traditionally one of the most expensive places on the planet to do business.

“The cost of doing business has been a barrier, particularly for companies in this part of the world,” he says.

But now the New Zealand dollar has never looked better against the pound (45 pence this week), which, like the greenback, seems destined for a sustained period of historic lows against most traded currencies.

Two other challenges for the Kiwi exporter are rental costs and the difficulty in affording and attracting top class employees. What a difference a global economic crisis makes.

London commercial property has taken the virtual dive off the white cliffs of Dover, falling 30 per cent on average and by half in some City regions.

Nomura, the Japanese bank that stepped in and saved 4,500 Lehman Brothers jobs following the investment bank’s demise, has negotiated six years of free rent in its London space.

“It’s unprecedented,” comments Schuitemaker.

Although he is wary of talk of ‘green shoots’ in the British economy, he does see activity beginning to pick up. The end to five consecutive quarters of contraction is imminent, he says. 

Despite the nascent recovery, though, Schuitemaker believes property costs will stay low for a reasonable period of time:

“CB Richard Ellis, one of our commercial partners, sees the next 12 to 18 months as a window of lower rents. After that, things will start to rise again.”