08 gennaio 2009
«Investment in Central London commercial property fell 65% in 2008 to only
£6.8 billion down from 2007’s record figure of £19.4 billion. According to
Cushman & Wakefield’s latest figures, £3.4 billion was invested over the
year into the important West End market which includes Mayfair and Victoria.
This was a fall of 41% on 2007’s total of £5.8 billion. In the last quarter
private investors with equity dominated activity investing £67.8 million.
In the City & Docklands market, investment fell markedly more. 2008’s year
end total was £3.4 billion down a steep 75% from 2007’s total of £13.6
billion.
Clive Bull, head of Central London investment, Cushman & Wakefield, said:
“The final quarter of the year has seen a total of £209 million transactions
completed in London’s West End – a market which has traditionally shown most
resilience to swings in the market. This figure compares with £690 million
for the previous quarter and £1.325 billion for the same quarter in 2007.
These figures are significant and clearly reflect a continuing slow down in
investment activity in a quarter which traditionally is characterised by a
significant amount of end of year activity. The deals that have been
completed include the purchase of 1 Old Bond Street, reflecting a yield of
approximately 3.55% and 160 Piccadilly at a yield of approximately 4%. The
majority of the transactions have been carried out by private investors
using a high proportion of equity given the continuing lack of debt
available.
“Toward the end of the quarter we saw signs of opportunity funds from both
the UK and overseas taking a much closer look at the West End market as
yields continue to move out. Currently there are a number of high profile
buildings in the West End under offer although not, as yet, exchanged or
completed."
Bill Tyser, head of City investment, Cushman & Wakefield, said: “Investment
into the City and Docklands market of around £3.4 billion reflects something
in the order of 25% of the turnover achieved in the year ending 2007 and
more akin to the level of turnover achieved at the beginning of this decade.
Of this turnover, around one quarter has been transacted by German funds,
who, for the time being, have largely drawn back from the market since
September. Investment in the last quarter of the year of £502 million was
similar to the third quarter’s total of £554 million although JP Morgan’s
£237 million acquisition of Riverside South in Canary Wharf for its own
occupation somewhat flatters the Q4 total.
“The positive news is that despite the lack of available credit from banks,
yields, especially for short-dated income stream stock, have reacted sharply
in Q4. There are a number of properties in this category where yields
approaching 10% can be considered and clearly the yield premium to gilts and
equities combined with low returns on cash, could produce a more buoyant and
active 2009 than we have experienced during 2008, so long as the stock is
available and the risk for further rent reductions are accounted for.”» (CS
della Società)
|