Worries about the war in Ukraine and interest rate rises dented deal flow in London office investment during the second quarter of the year, according to new analysis from Cushman & Wakefield.
Deals valued at some £2.54bn were sealed between April and the end of June. The agency described the performance as “respectable”, but noted that the total was down by a fifth on the five-year average.
The slowdown followed a strong start to 2022, leaving investment across the first half of the year at £7.95bn – up by 38% on the five-year average.
Notable deals include Kingboard’s acquisition of Brookfield’s 2 London Wall Place for £302m, and GIC buying a 75% share of Paddington Central from British land for £694m.
Cushman said there were 12 assets launched to the market in the second quarter, with a combined asking price of £4.1bn. Martin Lay, the agency’s head of London office capital markets, said: “The volume of capital targeting London is still significant… We can expect the positive momentum to continue into the second half of the year, albeit at a calculated pace.”
Explore and compare London offices here >>
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
