CENTRAL LONDON
At £8.1billion, H1 2017 Central London investment volumes were on a par with H1 2016. Large deals made a significant contribution to the total, in particular in the City which was dominated by the sale of The Leadenhall Building. In fact there were thirteen completed transactions in excess of £100 million in the three months to June, which brings the year to date total to 24.
During Q2 there was a resurgence in activity from, predominantly European institutions, outspending both funds and private money for the first time since 2008. However the underlying trend continues to show that publically quoted and private money is driving the investment market. These two investment groups continued to be net investors into the London market during the year to date, while institutions and funds were net sellers of assets. Major deals in Q2 included the acquisitions of 20 Gresham Street by China Resources Land, and the acquisition of 67 Lombard Street by Singapore’s Ho Bee Land, as well as Cannon Place by Deka and 2 & 3 Bankside to Deutsche AM.
Asia Pacific investors dominated the London market in the first half of this year and are set to continue with strong ongoing interest in assets right across the risk spectrum.
RCA data shows that the region accounted for more than a third of investment volumes. Their dominance was moderated to a certain extent by the return of European investors to the Central London market, with German investors leading the influx. European money represented just under a third of volumes.
Of the ten deals valued at more than £200 million in Central London, five of these were acquisitions by European investors, of which three were German. Asian investors were responsible for four of the remaining £200 million transactions, with Hong Kong investors investing in three of these to the tune of £1.7 billion.
