Investment volume for prime London offices will be high over the first half of the year, predicts CBRE, fueled by demand from overseas buyers.
Central London investment volume reached £1.7bn in Q4 2011 and £8.4bn for the whole year, reflecting a 14% fall on 2010’s figure.
City investments totalled £1bn in Q4, a slight drop on the £1.5bn recorded in the final quarter of 2010. West End volume in 2011 totalled £3.2bn, a sharp drop from the £4bn in the previous year that was, says CBRE, prompted by dwindling West End stock.
However, CBRE expects a strong start to 2012 with the completion of a number of deals which went under offer in late 2011. Deals include Crosstree’s purchase of 1 Berkeley Street for £155m from Aviva Investors, and Schroders-managed WELPUT paying £65m for 98 Theobalds Road, W1.
Fresh West End assets are also expected to come to the market from distressed and bank-led sales.
Foreign buyers continue to be a dominant force in central London, with the Middle East representing 19% of investors in Q4, and the Far East representing 16%.
A CBRE spokesman said: “Overseas investors’ appetite for London offices shows no sign of abating as their share of Q4 transaction volumes rose to an annual high of 62%.”
joanna.bourke@estatesgazette.com
