The average lot size for commercial property investments in the City of London reached £109.2m in May – up 52% on the previous year, according to Savills.
Turnover reached £665m across six deals, bringing the total for the year so far to £4.1bn across 53 deals, representing a 7% increase year-on-year.
Savills estimates there are currently 24 deals under offer in the City totalling £1.4bn. A number of larger building sales mean that the 10 largest available assets account for 80% of total availability.
Notable deals include CR Land/Colony North Star acquiring 20 Gresham Street, EC2, for circa £312m at 4% and £1,285 per sq ft.
Evans Randall sold 33 Old Broad Street, EC2, for £260m at 3.9% and £1,360 per sq ft to Hong Kong-listed investor SEA Holdings.
Felix Rabeneck, director in the City investment team at Savills, said: “The City market continues to be attractive to global investors looking for trophy assets with strong covenants.
“This is evidenced by the average capital value for transactions over £100m reaching £1,135 per sq ft so far this year – up 19% on this time last year.”
Savills’ prime City yield remains at 4%, with the West End prime yield currently at 3.25%.
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