Whichever paper you read the outlook for the economy looks uncertain. However, and possibly due in part to a weakened pound, the commercial property market in central London has defied expectations of a Brexit downturn and has attracted a good level of investment.
Savills noted at the end of August that over £2.4bn was invested in commercial property in July. Total turnover for the year to the end of July was £11.5bn.
Real estate consultancy Cushman Wakefield reported an increase of £1.38bn in commercial property investment in central London in the first half of 2017, compared to the same period in 2016. Much of this has been from overseas, with Asian investment in central London being at its highest since 2012.” Investment has in fact reached £4.07bn – making up 46% of the central London market.
Notable acquisitions in the city include The Cheesegrater and Walkie Talkie building on Fenchurch Street, which was sold to a Hong Kong-based company.
James Beckham, Head of London Capital Markets at Cushman Wakefield Asia Pacific said “investors are set to continue with strong ongoing interest in assets right across the risk spectrum.”
There has also been an increasing interest from European investors. Four deals valued at over £200m in the City were by European investors, of which three were German including the acquisition by Deutsche Asset Management of 2 & 3 Bankside.