City and West End commercial property transactions reached £2.2bn in the third quarter, driven by strong overseas investment.
International investors accounted for 30% of purchasers in the West End, where there were 40 deals totalling £1.43bn over the period, according to a report by Cushman & Wakefield.
A key deal included US investor Tishman Speyer buying Vico Capital’s Sanctuary Buildings, SW1, for £172m, reflecting a 5.78% yield.
During the same period, sales of £740m were generated in the City and Docklands via 16 transactions; 46% of buyers were overseas funds.
C&W said foreign investors were attracted to “weak sterling and easy access into London’s relatively stable marketplace”.
However, the combined transactions in the capital, totalling £2.2bn, were down by 21% on sales in Q3 2010, and almost 40% lower than the £3.7bn transacted in Q2 2011.
The decline is blamed on the summer seasonal lull, and the lack of available products this year.
C&W still expects 2011 turnover to exceed the £4.7bn achieved last year.
Clive Bull, head of central London investment at C&W, said: “The West End is proving resilient in the midst of economic uncertainty, providing a safe haven for equity in volatile times. The City remains a stable market for many international investors.”
joanna.bourke@estatesgazette.com
