The London office market continues to reign supreme with investors pouring in a record £4.9bn into the segment during the first three months of 2017. This happens to be the highest inflow for any quarter, since the fourth quarter (Oct-Dec) of 2014.
Data released by global real estate adviser CBRE shows further evidence of the resilience of the London office investment market following the EU referendum. A total of 13 deals of £100m or larger were transacted in the first three months of 2017 compared with 11 (transaction value of £4.1bn) in the last three months of 2016.
Overseas investors once again dominated the market; accounting for 80 per cent of all transactions by volume during the first quarter of 2017. This is up from 74 per cent in the previous quarter. “In a continued vote of confidence in the London market, appetite from overseas investors for large lot sizes remains undiminished. Nine of the 13 transactions amounting to £100m or more were purchased by overseas parties,” CBRE said in a statement.
Among international investors, Asians accounted for the bulk. The Leadenhall Building, 122 Leadenhall Street was purchased by Hong Kong-based CC Land for £1.15bn, representing one of the largest investment transactions in UK history. Boosted by the Leadenhall Building deal, Asian investors represented the largest share of overall investment transactions at 50 per cent, followed by European investors at 23 per cent, CBRE data shows.
A total of 13 deals of £100m or larger transacted in Q1 2017 compared with 11 in Q4 2016.