London office investment transactions totalled £4.8 billion at the end of Q3 2017, which equates to a quarterly increase of 51%, and a 64% increase on a similar period last year, when investment levels stood at £3.2 billion and £1.7 billion.
Fraser Williams, Director at Morgan Pryce, explains; “Foreign money dramatically increases these figures; there are many investment requirements circulating around the market.”
According to Central London real estate giant CBRE, the third quarter of 2017 has taken the year to date total to £13 billion.
High transaction levels were driven by overseas investors who, for the 16th quarter in a row, represented the largest investor group, comprising 94% of total transaction volume. The most significant overseas buyers and speculative investors were from Asia; spending £3.3 billion and representing 68% of all office transactions, which equates to the highest quarterly total for Asian investment on record. While UK investors dominated the sell-side and represented 65% of disposals in the three months to the end of September.
20 Fenchurch Street was the quarter’s largest deal, sold by Landsec and Canary Wharf Group to LKK Health Products Group for £1.3 billion.
Williams states; “Sellers are appreciating foreign money and gaining good fiscal returns on their investments. Despite Brexit, the market is flipping in favour of foreign owners and investors.”
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.
