- What Central London investment volumes are down 47.5% after the first three quarters of 2019 compared to the same period last year
- Why Investors and would-be vendors take a wait-and-see approach
- What next Pent-up investment stock expected to be released to the market once the political fog clears
Commercial property investment volumes in central London so far this year are just over half what they were at the same point in 2018, according to CBRE.
Data collated by the agent for React News, which includes provisional figures for the third quarter of 2019, shows that £6.6bn of real estate has changed hands so far this year in the capital, down from £12.57bn over the first three quarters of 2018 – representing a fall of 47.5%.
Provisional data showed that £2.4bn transacted in London in Q3 – compared to £4.34bn in the third quarter of 2018 – made up of £1.6bn in the City and £803m in the West End. This added to the £4.2bn of commercial property that sold during the first half of 2019.
James Beckham head of Central London investment, CBRE, said: “Central London investment volumes remain significantly down on 2018 with provisional data showing YTD turnover at the end of Q3 2019 at around £6.6bn.
“Whilst volumes are lower, we are still seeing little correction in pricing with prime yields holding firm as demonstrated by the Q3 sale of 8 Finsbury Circus at 4%. However, it’s both vendors and purchasers who are continuing to take a wait and see stance in light of the continuing political and economic uncertainty.”
Key deals that closed over the quarter, included:
- Brockton Everlast’s £106m acquisition of Telephone House in Shoreditch, EC2
- Orion’s £209.55m acquisition of the BT Centre in St Paul’s
- Angola’s Quantum Global’s £277m sale of 23 Savile Row, W1, to Lazari
- Stamford Land’s £260m purchase of 8 Finsbury Circus, EC2
- Wing Tai’s £225m acquisition of 8 Salisbury Square, EC2
- Aviva Investors’ £80.75m sale of Forum St Paul’s to a Hong Kong investor fronted by Goldstone Commercial
- Derwent’s £103m sale of The Buckley Building at 49 Clerkenwell Green to CBRE Global Investors for £103m
- Quadrant’s £27m purchase of Plot A in Nine Elms from Royal Mail
- Mayfair Capital Partners’ £112.5m acquisition of 15 Bonhill Street, EC2
Whilst some overseas investors have been hesitant about buying property in the UK at a time of political instability, investment volumes have been largely dragged down by hesitant landlords, which are largely waiting for Brexit-related clarity before committing to property disposals.
The figures have also been exacerbated by the number of properties which, having been openly marketed this year, have since been withdrawn. They include: 21 St James’s Square; The Epworth Building; Embassy Gardens; 45 Cannon Street; 100 Cheapside; and Plantation Place South.
