Institutional West End property sales sizzle to record high as investors capitalise on weaker pound and foreign interest
Institutional sales of commercial property in the West End have topped £2.7bn in the year-to-date, the highest volume ever recorded, according to estate agent Savills.
Standard Life, Aberdeen Asset Management, DTZ Investors, TH Real Estate, Blackrock and Aviva have each sold more than £100m of assets since January, with vendor institutions making up 55 per cent of West End sales this year.
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In a boom driven by the fall in the value of the pound and a subsequent influx of overseas investors, sales are expected to reach £3bn by year-end. This will significantly outpace the previous record of £2.3bn in 2013.
“We have seen staggering interest from overseas investors since the summer and currency benefits have been a key part of this,” said Paul Cockburn, director in the central London investment team at Savills.
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“Some prices have now surpassed all previous highs demonstrating the long lasting appeal of London property.”
Notable deals from institutions this year have included Standard Life’s record sale of 13-14 Curzon Street at over £3,000 per sq ft (£32,292 per sq m) this autumn and Blackrock’s sale of the Sony headquarters on Great Marlborough Street for £104m in September.