West End Q1 average deal size sets new record at £86 million - Savills

18 April 2017

London’s West End investment market set a new quarterly record in Q1 2017 with the average deal size hitting £86 million, significantly exceeding the previous quarterly high by 45%, says Savills.

The international real estate advisor says that transactions in the market totalled £1.89 billion in the first quarter, boosted by volumes of £558 million across 10 deals in March. This was the second largest Q1 turnover figure ever and 30% above the five year average, according to Savills.

Q1 saw 22 transactions in total with key deals including AXA Investment Managers, advised by Savills, acquiring the Warwick Building in Kensington for £56.6 million, reflecting a net initial yield of 5.19%. This former Victorian warehouse totals 79,506 sq ft of office space, let to PG Media Services Limited until 2021 at £39.90 per sq ft.

Paul Cockburn, Head of the West End investment team at Savills, comments: “Such strong quarterly data clearly reflects how robust investors see the West End market dynamics. One of the biggest challenges our market faces is supply and persuading owners to part with their prized assets.”

Savills says prime yields in London’s West End market remain at 3.25% for the fourth successive month.

See Savills West End Investment Watch for April here

 
 

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