London Commercial Property Investment At 6-Year High

By Editorial 07 January, 2014

Investment volumes in Central London's commercial property last year totaled GBP19.9bn (USD32.6bn), according to commercial real estate services firm Cushman & Wakefield.

The figure represents the highest level of Central London commercial property investment since 2007, and is 47 percent higher than the GBP13.5bn recorded in 2012.

In the West End market, the fourth quarter of 2013 has seen GBP2.3bn of turnover in 39 transactions with an average deal size of GBP58.3m. This takes the annual figure for West End investment to GBP8bn across 187 transactions, the highest annual turnover on record. Around 75 percent of the volume transaction in 2013 was purchased by international investors, up from 52 percent in 2012.

In the City & Docklands, total investment in Q4 2013 reached GBP5.6 bn, taking total investment for the area in 2013 to GBP11.9bn. From a purchaser perspective in Q4, overseas investors in the City & Docklands remain the most active accounting for 80 percent of market share (GBP4.5 bn) across 12 transactions. This is largely due to the recent purchase of More London by Kuwaiti overseas sovereign fund St Martins (Kuwait Investment Authority) for GBP1.7bn and the acquisition of a 50 percent stake in Broadgate by GIC, Singapore's sovereign wealth fund, also for GBP1 .7bn. These two transactions are the UK's largest ever commercial property deals.

Overseas-based vendors continue to be the most active, accounting for 72 percent of transactions, with the largest proportion (66 percent of total volume) being overseas property companies. UK-based vendors, mainly property companies as well (17 percent), account for 27 percent of total volume sold. Very large transactions have mainly contributed to the total volume, indicating a strengthening commercial property market from large international institutions.

Tags: Investment | Real-estate Investment | Kuwait | Accounting | Real-estate | Singapore | United Kingdom | Services | Expats | Investment | Invest | Investment |


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