According to Savills research, investors from mainland Europe have ploughed £1.7 billion into Central London commercial real estate so far this year, accounting for almost one third (31%) of the market. Activity is double that of the same period in 2016 where European investors spent £824 million in London, accounting for 14% of total transaction volume.
Key deals have included KanAm’s purchase of Evershershed’s London offices at 1 Wood Street for £179 million, a consortium of institutional investors who acquired Olympia London for c.£229 million and Deka Immobilien’s purchase of Cannon Place, EC4 for £485 million.
Felix Rabeneck, director in the Central London investment team at Savills, comments: “Investors continue to recognise London’s attractiveness as an international market place and a safe haven for capital. In spite of headwinds generated by Britain’s decision to leave the EU last year, the UK continues to look stable to overseas investors and comparatively more attractive than many other markets. This, coupled with a fall in the value of Sterling, has led to a return in appetite from European investors.”