With over £2 bn (EUR 2.36 bn) of transactions exchanging in the past three weeks the Central London commercial property market continues to show its resilience and attraction to overseas investors, according to specialist central London investment consultancy Gresham Down Capital Partners.

With over £2 bn (EUR 2.36 bn) of transactions exchanging in the past three weeks the Central London commercial property market continues to show its resilience and attraction to overseas investors, according to specialist central London investment consultancy Gresham Down Capital Partners.

'Five weeks ago the fear was that there was too much stock on the market but the appetite of buyers has been voracious,' noted managing partner Stephen Down. 'US opportunity fund Carlyle has just bought six London office buildings, comprising the White Tower portfolio, from receivers for over £670 mln. Gresham Down itself has been advising a private Eastern European investor who has just acquired Mitsubishi Estate Company’s Bow Bells House, a trophy City asset for £140 mln.'

Down is also advising a group of investors selling River Court, the £300 mln European headquarters of Goldman Sachs in the City. 'This is a good example of the type of trophy stock that appeals to the overseas market,' he said. 'It has been owned by the same group since it was developed in 2000 and is let to Goldman Sachs for another 15 years.' Given the buildings relatively low rental level at present, the building offers the investor access to rental growth over the next three to four years, he added.

Office rents in the City of London have risen by almost 12% over the past three months and by 24% in the past six months. The downturn led to a collapse in construction starts in the City which is now driving up rents.

Down highlights recent Qatari acquisitions such as Harrods in Knightsbridge for over £1.5 bn and Park House in Oxford Street - a prime commercial and residential development - for £500 mln, as further evidence of the weight of money looking to invest in trophy London assets.

There is also increasing evidence that Malaysian, Korean and Chinese investors are running their slide rules over Central London property, he added. 'Chinese entrepreneur Joseph Lau has been reported as the preferred bidder on the £300 million Tower 42 but we know there are a number of other Far Eastern institutions and private investors that have targeted London because of the liquidity and transparency of the market but also because of the weakness of sterling.'