Savills has revealed that £841m was transacted in London’s West End commercial property market during January 2017.
The international real estate adviser highlighted that £805m of those transactions were carried out by investors originating from China.
Chinese investors were responsible for four out of the six deals which took place during January 2017.
This volume of £805m equates to 80% of the total Chinese investment in the West End market for the whole of 2016.
Paul Cockburn, director in the central London investment team at Savills, said it continued to see an influx of overseas investors prompted by the devaluation of sterling following the EU referendum vote.
“From a Chinese investor’s standpoint, London looks attractive as the currency shift means that entry prices may appear 15-20% cheaper than this time last year.
“There is full confidence that London will retain its status as a leading financial centre and we’re now getting enquiries from investors who may have watched from the wings but believe that now is the time to buy.”
Last year, Savills reported that the UK commercial property market was a ‘safe haven’ for Chinese investors.
Major deals carried out by Chinese investors include the acquisition of One Kingdom Street in Paddington for £292m by Hong Kong-based CC Land Holdings.
This was the second largest transaction of all time by a Chinese investor in the West End by Savills metric and was one of three deals over £200m which originated from China in January.
Meanwhile, AshbyCapital secured a £105m loan facility for its 50% stake in a completed west London development.
Savills expects prime yields in London’s West End market to remain at 3.25%, with forecasts suggesting that they would not soften in the short term.
Recent Comments