Slow September supply in the West End – Savills
Activity in the investment market for commercial property in the West End of London was disappointing in September, says Savills, with only 14 new opportunities coming to market. Only two of these were priced at more than £20m, and another four over £15m. A year ago, 21 properties came to market during the same period, the firm notes.
While market uncertainty appears to be putting the brakes on supply, September was a very busy month in terms of deals done, recording the highest number of investment transactions in a month so far this year, with £743m in 16 deals. This includes the sale of the freehold interest in W Hotel, Leicester Square to a Qatari investor for around £200m and the sale of the freehold interest in the Royal Mail Group site at Rathbone Place Place to Great Portland Estates for £120m, Savills notes. Only one office deal was transacted in September: the West End market is dominated by retail activity at present, the firm says. Six retail assets changed hands in September, three of which were on Oxford Street.
The unwinding of Irish property deals by NAMA and administrators continues, and accounted for five of the deals done in September, Savills notes. It expects more in coming months, with several currently under offer. Today, the Financial Times reports that Phones4U founder John Caudwell is to buy the Audley Square carpark in Mayfair for £150m from NAMA, and may turn the site into an upmarket residential development.
