International investors continue to drive investment volumes in the Central London office market with non-UK capital accounting for 56% of the total so far this year, according to the latest quarterly figures from Jones Lang LaSalle. In total, £8.1 bn (EUR 9.4 bn) has been transacted in London in the first nine months, the adviser said.
International investors continue to drive investment volumes in the Central London office market with non-UK capital accounting for 56% of the total so far this year, according to the latest quarterly figures from Jones Lang LaSalle. In total, £8.1 bn (EUR 9.4 bn) has been transacted in London in the first nine months, the adviser said.
In the City over £4.35 bn has been transacted year to date, with overseas investment accounting for 59%, a 31% rise on the same period last year. Recent transactions include Asian investors buying Tower Bridge House for £163 mln, a German fund acquiring 30 Crown Place for £139 mln and an Israeli institution acquiring Ibex House for £64 mln.
Chris Northam, Director in the City investment team at Jones Lang LaSalle said: 'We have seen a significant increase in the amount of available stock in the past couple of weeks, driven in part by short-term debt maturities or fund redemption issues. However, there are strong levels of demand from both the domestic and overseas investor markets, particularly for realistically priced prime investments and active management, value-add opportunities. Historically the final quarter of the calendar year accounts for roughly 35% of annual turnover in the City and the final three months of the year should continue this strong trend.'
In the West End £1.38 bn was transacted in Q3 across 34 deals, an increase of 18% compared with Q3 2010 and 32% higher than the 10-year average, despite a continuing scarcity of openly marketed stock.
