There has been an array of prime office building investment deals occurring in London, demonstrating a returning market confidence, particularly when compared to the first half of the year.
In the first half of 2010, private investment deals made up around 11% of all deals, spending £1.37 billion; however a string of recent purchases has helped to boost trust in the market and reliability in investments.
In one of the biggest commercial property deals that London has ever seen, Istithmar World Capital, a subsidiary of Dubai World, has sold a Grade A prime London office to an unnamed Russian buyer for £172m.
The building, named Grand Buildings, represents a landmark Victorian office building, constructed in the 1870s, situated in London’s busy West End and features a significant amount of retail and office space. Current occupiers are Enterprise Oil, a major British independent exploration and production company.
West End office rents have risen for the first time in three years, according to research by Jones Lang LaSalle (JLL).
Rental rates increased to £85 per square foot in the second quarter, up from £75 per square foot in the first quarter. The real estate firm expects rents to hit £87.50 per square foot by the end of 2010. (more…)
Tower 42, which was the first skyscraper to be built in the City of London, is now being put up for sale by the owners BlackRock and Hermes Real Estate.
After owing the property for 12 years the owners have now announced plans to sell the 600ft building, which was the former Natwest tower.
They also have plans to sell five other office buildings, in the same area, on a 2.2-acre plot.
Real estate investment trust Hammerson is to test the water for investment interest by putting Harbour Exchange One and Two onto the market.
They are reported to be instructing Jones Lang LaSalle to put the building on to the market for £150 million, representing a net yield of 8.5% initially. (more…)
Standard Life Investments have recently announced their latest acquisition, 33 Charlotte Street, London, W1.
They have acquired the property on behalf of Standard Life Investments’ UK Property Fund, for a net figure of £19.10 million. They bought it from Capital & City Plc and the site comprises mainly of offices, as well as three restaurant units and some residential space. Purchase yield was 5.6%. (more…)
M1 Real Estate, an investment firm from Lebanon, has bought Victoria House in Bloomsbury Square for £175 million.
Moritz Group, of Ireland sold the building and were advised by Jones Lang LaSalle, M1 Real Estate were advised by CB Richard Ellis during the purchase.
Victoria House is an art-deco style building, which was built in 1929 and refurbished in 2003 by Garbe. It holds around 300,000 sq ft of office space and 50% of the building is let by government-backed tenants. The average lease terms at offices in the building are about 9.5 years. (more…)
A new survey has revealed that many of the UK’s major financial institutions are unwilling to lend to property investors until 2011.
The survey, by Jones Lang LaSalle, has cast fresh doubt over the recovery of the commercial property market across the country. The unwillingness to lend could have a devastating effect as the UK recovers from the economic downturn as it means buyers will struggle to access finance and companies will find it difficult to re-finance. The Daily Telegraph reports that there is currently £250 billion of debt unpaid to the sector. (more…)