LISTEN: Investment in commercial property in Midtown is set to exceed £1bn in the first quarter, according to Farebrother.
The agency forecast that figures could reach almost twice the £567m recorded in Q4, 2015.
The first quarter saw a number of significant transactions, notably Holborn Gate, 326-330 High Holborn, WC1, which was bought by Westmount Real Estate from Land Securities for £138m; High Holborn Estate,WC1, which Blackstone sold to Dubai developer SRG Holding for £135m; and 5 Fleet Place, EC4, sold by Abu Dhabi Investment Authority to Poly Real Estate Group for £145m.
Farebrother noted that while larger lot sizes remain the domain of overseas investors, UK investors are also still active.
Alastair Hilton, head of investment at Farebrother, said Midtown was a compelling proposition for investors looking to place capital.
He added: “We are on course for a strong first quarter of investment in Midtown, despite a slowdown in investment activity across central London as a whole.
“With the European referendum on the horizon we are undoubtedly seeing overseas investors becoming more circumspect, but in Midtown its unique fundamentals are helping to sustain investor interest.
“We do anticipate a pause in the second quarter, but it is worth noting that the occupational market in Midtown, which is characterised by a high volume of deals at the small-to-medium size range, is less affected by political uncertainty than other central London markets.”
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