London property investment had an active first quarter in Q1 2017 with £4.9bn of transactions, according to CBRE.
With 13 deals of £100m or more, it was the highest quarterly transaction total since Q4 2014.
Overseas investors accounted for 80% of the volume, up from 74% in the last quarter of 2016, and were behind nine of the 13 large-scale deals.
The total volume was boosted by the sale of the Cheesegrater, EC3, to Hong Kong-based CC Land for £1.2bn, which was one of the biggest deals in UK history. The deal meant that Asian investors represented 50% of overall investment transactions that quarter.
Prime City yields also tightened to their pre-referendum level of 4% after moving out to 4.25% in Q2 2016. Prime West End yields were stable at 3.75%.
Stephen Pearson, head of City investment at CBRE, said: “The momentum we experienced at the end of last year has shown no sign of abating in the early months of 2017 and London remains a central focus for international capital requirements.
“This is a great endorsement of London’s continued appeal and testament to its resilience and ability to adapt and diversify. Appetite from overseas investors for large lot sizes, particularly in the City, will be a key feature of the market for the remainder of the year.”
To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette
