City Investment volumes up 58% on 2016 and poised to overtake 2014's record

23 October 2017

Commercial investment volumes in the City of London for the first three quarters of 2017 have already exceeded the full-year total for the whole of 2016, says international real estate advisor Savills. Volumes reached £8.5 billion as the end of September – 6% higher than 2016’s annual total of £8.07 billion and 58% up on the same point last year.

With an average turnover in the final quarter over the last five years of £4.1 billion, Savills predicts that total City turnover in 2017 could reach or surpass the record of £12.6 billion set in 2014. 93 deals have been transacted this year, with an average lot size of £91.6 million, according to Savills, compared to an average of £52.4m in 2016.

September saw £317.53 million transacted across three deals, equating to an average lot size of £105.84 million. Key deals during the month included a private Hong Kong investor acquiring the 176,392 sq ft Aldwych House, WC2 for £250 million from Rowan Asset Management, reflecting a NIY of circa 4.42% and £1,417 per sq ft. The building is let to tenants including WeWork, Wasserman and the London School of Economics. September also saw the sale of 8 Bouverie Street, EC4 to Harbor Group International for £48.03 million, reflecting 4.12% NIY and £1,004 per sq ft. The building is single let to Tipall Ltd with a surety from Euromoney Institutional Investor Plc, and has an unexpired term of 11.9 years.

Felix Rabeneck, director in the central London investment team at Savills, comments: “As of the end of the third quarter Savills had been directly involved in almost 40% of total turnover in the City this year, the largest of any investment agent. We are still currently monitoring 67 investment opportunities in the City market totalling approximately £7.8 billion, of which 20 are currently under-offer, totalling almost £1 billion, leaving a substantial amount of available opportunities and therefore plenty of potential for 2017 to overtake 2014’s record.”

 

 
 

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Key Contacts

Felix Rabeneck

Felix Rabeneck

Director
Central London Investment

Savills Finsbury Circus House

+44 (0) 20 7409 8918

 

Robert Buchele

Robert Buchele

Director
Central London Investment

Savills Finsbury Circus House

+44 (0) 207 409 8007