Total transaction volumes in London’s West End reached a record £3.85 bn (€5.5 bn) in H1 2015, marking a 22% increase on the previous H1 record of £3.15 bn in 2014, according to broker Savills.
Total transaction volumes in London’s West End reached a record £3.85 bn (€5.5 bn) in H1 2015, marking a 22% increase on the previous H1 record of £3.15 bn in 2014, according to broker Savills.
June was a bumper month with £899 mln transacted across 18 deals and growing investor appetite for assets over £100 mln.
The largest deal in June, and third largest of the year to date, saw Savills sell the Notting Hill Gate Estate on behalf of Pears Group and La Salle Investment Management for £219 mln. The 3.1 acre (1.3 hectare) site, which comprises offices, retail, leisure and residential accommodation was acquired by Frogmore.
Savills highlights demand for prime retail investments as a continuing theme throughout 2015 to date. In the first half of the year, 368 Oxford Street and 145 Oxford Street sold for £30 mln and £31.5 mln respectively with both deals reflecting a net initial yield of sub 3%.
At £1.88 bn, the total transaction volume for assets over £100 mln was 95% higher than the £0.96 bn total in H1 2014. In June, deals included Matterhorn Pallos Partnership’s £153 mln disposal of the Kings Mall retail and office development on King Street which reflected a 4.25% net initial yield.
'The West End’s record H1 turnover was driven by numerous larger transactions, reflecting significantly greater liquidity for bigger lot sizes and a more active debt market. Although stock is likely to be restricted over the summer months, we are expecting a range of opportunities to be presented in the autumn, creating an equally strong second half of 2015,' said Paul Cockburn, director of Central London investment at Savills.