Record volume of UK institutional sales sees London's West End hot to shop

08 December 2016

According to Savills, UK institutional sales in London’s West End in 2016 year to date have topped £2.7 billion, the greatest volume ever recorded, with total year end figures expected to rise to £3.0 billion. Prior to this, Savills says the greatest activity by UK institutional vendors in the West End market was in 2013 which saw £2.3 billion sales by year end.

Standard Life, Aberdeen Asset Management, DTZ Investors, TH Real Estate, Blackrock and Aviva have each sold over £100 million of assets since January with UK institutions as a vendor class making up 55% of West End sales this year. Key deals include Standard Life’s record sale of 13-14 Curzon Street at over £3,000 per sq ft (£32,292 per sq m) and Blackrock’s sale of the Sony headquarters on Great Marlborough Street for £104 million.

Savills says activity has been driven by funds responding to the influx of overseas investors in the UK following Brexit, activated by the Sterling devaluation. Others have looked to increase liquidity to return money or refocus and reinvest elsewhere. 

Paul Cockburn, director in the Central London investment team at Savills, comments: “We have seen staggering interest from overseas investors since the summer and currency benefits have been a key part of this. Some prices have now surpassed all previous highs demonstrating the long lasting appeal of London property.”

Savills says prime yields in London’s West End market have now moved back in 25bps to 3.25%.

 
 

General Enquiries

Savills Margaret Street

 

Key Contacts

Paul Cockburn

Paul Cockburn

Director
Central London Investment

Savills Margaret Street

+44 (0) 20 7409 8788

 

Ashley McKeown

Ashley McKeown

Associate
Press Office

Savills Margaret Street

+44 (0) 20 7409 8884