2013 Q1 London Midtown Office Leasing market update
London Midtown Office Investment market update
(Entertainment-NewsWire.com, May 16, 2013 ) London, UK -- Over half a billion pounds has been invested in the Southbank Office market in the last six months as investors compete for limited investment opportunities South of the River Thames, according to Farebrother’s latest Research.
Investment turnover in the Southbank office market in the 1st Quarter 2013 rose 20% on the previous quarter to £294m, already three-quarters of the annual average and after turnover in the 4th Quarter 2012 reached £244m. The average quarterly total for the Southbank market is £99m.
The largest transaction in the first three months of 2013 was the £223m sale of the 300,000 sq ft Palestra, 197 Blackfriars Road, London, SE1, by Blackfriars Investments and Royal London Asset Management to German fund DEKA following the regear of TFL’s lease extending its stay to 2036. The transaction reflects a net initial yield of 5.09% and a capital value of £743 psf. This yield reflects the long-term nature of the income stream and again overseas investors have been aggressive in this sector.
Farebrother’s London Southbank Investment Report, produced in partnership with IPD and due later in May, is expected to show that investors’ faith in the market continues to deliver asset growth.
Alastair Hilton, Head of Investment at Farebrother commented “Investor interest in London’s Southbank will continue to grow as the opportunities for value add become more apparent, particularly when benchmarked against the other key Central London markets. The market’s biggest challenge at present is liquidity albeit this is to be expected given its total stock which is a quarter of the size of the City.”
About Farebrother: Farebrother is an entrepreneurial and experienced firm of commercial property advisors in London. The firm is privately-owned, established in 1799 and is headquartered in London, England. Farebrother delivers responsive office, industrial, residential and retail leasing and investment acquisition and disposal, property management, lease advisory, valuation and corporate services across the UK, for leading Fund, Institution, Developer, Occupier and Private clients.
Farebrother is regulated by the Royal Institution of Chartered Surveyors.
