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Commercial Property News
London commercial property deals up in Q2 2009 for the first time in 2 years
Investment in London commercial property has risen for the first time in two years, raising hopes that the troubled market may be recovering.
Deals worth £1.43billion were completed in central London in the second quarter of 2009, according to property agents Cushman & Wakefield (C&W), an increase of 110% on the first three months of the year.
Overseas buyers have flocked to the UK in search of quality assets at distressed prices following the financial crisis. The weakness of the pound is adding to the attraction, although there remains a lack of demand for secondary properties and a lack of available finance.
The data shows that more than 60% of all transactions in the West End were by private overseas buyers or funds.
Clive Bull, head of central London investment at C&W, said that, with a further £275million of stock under offer in the West End, there were signs the improvement was not just a "false dawn".
The research is published as Brixton, the warehouse owner which is a takeover target for rival Segro, revealed that it agreed nine new lettings in June. The company's vacancy rate had soared to more than 20%, however so far this year it has let 450,000 sq ft of space, compared to 310,000 sq ft in the second half of 2008, and added almost £4.4million of annual income.
Deals worth £1.43billion were completed in central London in the second quarter of 2009, according to property agents Cushman & Wakefield (C&W), an increase of 110% on the first three months of the year.
Overseas buyers have flocked to the UK in search of quality assets at distressed prices following the financial crisis. The weakness of the pound is adding to the attraction, although there remains a lack of demand for secondary properties and a lack of available finance.
The data shows that more than 60% of all transactions in the West End were by private overseas buyers or funds.
Clive Bull, head of central London investment at C&W, said that, with a further £275million of stock under offer in the West End, there were signs the improvement was not just a "false dawn".
The research is published as Brixton, the warehouse owner which is a takeover target for rival Segro, revealed that it agreed nine new lettings in June. The company's vacancy rate had soared to more than 20%, however so far this year it has let 450,000 sq ft of space, compared to 310,000 sq ft in the second half of 2008, and added almost £4.4million of annual income.
Wed, 1st Jul 2009