Central London investment volumes rose sharply during the second quarter as strong investor demand was quelled by an increase in stock on the market, CB Richard Ellis said on Wednesday. Investment turnover rose 57% over the quarter to reach £1.9 bn (EUR 2.3 bn).
Central London investment volumes rose sharply during the second quarter as strong investor demand was quelled by an increase in stock on the market, CB Richard Ellis said on Wednesday. Investment turnover rose 57% over the quarter to reach £1.9 bn (EUR 2.3 bn).
Mike Edwards, executive director Central London Capital Markets said: 'With investor demand still strong, investment turnover looks set to remain high, although supply of investment stock has fallen significantly in recent weeks. Overseas buyers remain very active in the market and accounted for 62% of total investment volume. The acquisition of the Knightsbridge Estate pushed Middle Eastern investors’ share of Central London investment purchases to 45%.
'German funds have been active on both purchases and sales, and were responsible for 11% of investment turnover. On the domestic side, UK property companies and UK institutions continued to show interest in the market and accounted for 19% and 14% of investments respectively.'
CBRE said that the top three deals of the second quarter in London were Saudi investors Olayan Group acquiring Knightsbridge Estate from Avestus Capital Partners for £600 mln; Evans Randall disposing of Milton Gate to AGC Equity Partners, Middle Eastern investors for £164 mln, reflecting a yield of 6%; and Evans Randall's disposal of Condor House to the German open-ended fund SEB Immoinvest for £104 mln, for a yield of 5.3%.