Warren Buffett's Berkshire Hathaway investment house has made its first foray into the UK residential property market with an investment in a group of London estate agents.
Mr Buffett's investment house operates Berkshire Hathaway HomeServices, an estate agency business that uses a franchise model.
This business has taken on Kay & Co, an estate agency focused on central London.
The company said it expects to open ten new offices in London over the next decade.
"London has been among our highest priorities as a key centre for international business and an attractive market for global capital looking to invest in property," said Gino Blefari, chief executive of the Berkshire Hathaway home services business.
Kay and Co was founded in 1982 and is focused on the Mayfair, Hyde Park, Marylebone, Regent's Park, King's Cross, Bayswater, Paddington and West End areas of London.
Property agent Henry Pryor said: "I’m confused by this, I can’t understand what’s in it for either party or for Kay & Co's clients. I fear this will follow the pall of smoke emanating from previous link ups between Uncle Sam and London property.
"What is the connection between people buying and selling in London and the worlds richest man and his hedge fund is a joke to which there is no obvious punchline."
The development comes as fund manager Neil Woodford, who runs the £6.8bn Woodford Equity Income fund, said he has been selling shares in Lloyds Banking Group, despite being optimistic about the prospects for that company, in order to invest more in UK house builder shares, where he sees greater opportunities.
david.thorpe@ft.com
