A Great Start to the Year!
7 January 2014 by Marketing Team
The end of 2013 figures are in and it appears that Central London commercial property transactions totaled £19.9bn in 2013. According to Cushman & Wakefield this is the highest figure since 2007. To give you a year on year comparison this figure is a 47% increase on 2012’s total of £13.5bn.
In the City & Docklands, total investment in Q4 2013 reached £5.6bn, taking total investment for the area in 2013 to £11.9bn, reports the agent.
From a purchaser perspective in the final quarter, overseas investors in the City & Docklands remain the most active. 12 transactions accounted for 80% of market share, equating to £4.5bn. It must be noted that this statistic is affected by the purchase of More London by Kuwaiti overseas sovereign fund St Martins (Kuwait Investment Authority) for £1.7bn. In addition, GIC, Singapore’s sovereign wealth fund acquired a 50% stake in Broadgate, also for £1.7bn.
Cushman said the UK investor market in the City & Docklands was very active in Q4, with 26 purchaser transactions totalling £1.1bn, or 19% of Q4 market volume. The average deal being £42m. Total investor volume was “hugely reliant” on a few significant deals such as More London, Broadgate and the St Botolph Building (£464m).
The top five deals for the final quarter of 2013 account for around 77% of total City & Docklands investment. Cushman highlights the importance of the number of very large transactions which have contributed to the total volume. This indicates a strengthening commercial property market from large international institutions. Following on from this turnover for the first quarter of 2014 is likely to be strong in the City & Docklands market with the level of acquisitions currently under offer amounting to approximately another £1.3bn across approximately 30 transactions.
Mike Tremayne, head of West End investment at Cushman & Wakefield, said: “The outlook for 2014 is very positive. With a continuing mismatch between high levels of investor demand and inefficient supply, we see no sign of this competitive market abating.”
Thank you to all our FJG bakers for helping us to raise an amazing £165 for this year's @EasternLegal… https://t.co/smVFwBNM3j2 days