West end latest 15th April 2015

Investment volumes in London’s West End hit £862m in Q1 2015 almost double Q1 2014’s volumes of £440m. Despite an impending General Election, £1.7bn worth of West End office stock was under offer at the close of the first quarter of the year. Recent transactions include Queensbury House, 3-9 Old Burlington Street W1, acquired by Norges Bank Investment Management (NBIM) for £190.6m from Sorgente Group. Threadneedle Investments purchased One Neathouse Place SW1 from IVG Euro Select 8 for £100.5m and 1 Mabledon Place WC1 was purchased for £72.6m by a private Middle Eastern investor. Overseas buyers were active during the quarter with Norway and Hong Kong the most prominent sources of overseas capital. Julian Sandbach, head of West End office investment at JLL said: “Following on from very active 2014 with £6billion of capital investment into the West End office market, we are seeing continued confidence in the market in 2015, with no signs of slowing down in spite of the impending General Election. “The surge in Q1 investment volumes indicates continuing investor appetite for the West End, with buyers drawn to the positive sentiments for the occupational markets, particularly where the quality of the stock on the market offers real future anticipated growth prospects. “Despite last year seeing the sale of a number of trophy assets, we are still seeing highly desirable investment opportunities coming to market. Positive sentiments and a marked imbalance between levels of capital seeking access to London real estate combined with limited opportunities in which to invest, is encouraging competitive bidding which is driving pricing upwards.”