Average lot size of City deals hits £109.2m in May

26 June 2017

The average lot size for commercial property investments in the City of London reached £109.2 million in May (2017); up 52% on May 2016 levels according to the latest City Investment Watch from Savills. Turnover reached £665 million across six deals, bringing the total for the year so far to £4.1 billion across 53 deals up 7% year-on-year.

The firm estimates there are currently 24 deals under offer in the City totalling £1.4 billion. A number of larger building sales mean that the ten largest available assets account for 80% of total availability.

Notable deals include CR Land/Colony North Star acquiring 20 Gresham Street, EC2 for circa £312 million at 4.0% and £1,285 per sq ft (£13,830 per sq m). Evans Randall sold 33 Old Broad Street, EC2 for £260 million at 3.9% and £1,360 per sq ft (£14,639 per sq m) to Hong Kong listed investors SEA Holdings.

Felix Rabeneck, director in the City investment team at Savills, comments: “The City market continues to be attractive to global investors looking for trophy assets with strong covenants. This is evidenced by the average capital value for transactions over £100 million reaching £1,135 per sq ft so far this year; up 19% on this time last year.”

Savills prime City yield remains at 4.00% with the West End prime yield currently at 3.25%

Read the full City Investment Watch for June here


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