Central London investment up 18% year-on-year
Commercial property investment in central London rose by £1.35bn in H1 2017 compared to the same period last year, according to Cushman & Wakefield.
Volumes reached £8.83bn in the first six months of 2017, up from £7.45bn in the same period in 2016.
Cushman said the increase was in part down to the confidence of Asia Pacific investors, who made up 46% of the market in H1 spending £4.07bn. This was the most Asia Pacific had invested in central London commercial property in H1 in five years.
Major deals in the first half of the year included the acquisitions of The Leadenhall Building – popularly known as The Cheesegrater – and One Kingdom Street by Hong Kong’s CC Land; the purchase of 20 Gresham Street by China Resources Land; and the acquisition of 67 Lombard Street by Singapore’s Ho Bee Land.
However, four out of the seven £200m-plus deals in the City of London involved European buyers, three of which were German. This included Deutsche Asset Management’s acquisition of 2&3 Bankside for £310m.
James Beckham, head of London capital markets at Cushman & Wakefield, said: “There are push and pull factors behind all global capital flows, so the recent high-profile visit to Hong Kong by the Chinese President to mark the 20th anniversary of the handover is a timely reminder of the region’s impact. Asia Pacific investors from across the entire region 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.”
Of the £8.83bn of commercial property assets transacted in the first half of 2017, Cushman & Wakefield advised on £2.49bn of the deal flow, representing a 28% market share.
Source: “Property Week”