Following a flurry of prime London office deals, including the sale of One London Wall Place by Brookfield to AGC for £480m last week, React News is reporting that yields look to be holding for the best quality prime London office assets.
According to React News, Central London office deals totaling approx. £3bn are currently sitting in solicitor's hands. It suggests that buyers are keen to focus on London prime assets during this uncertain time and that the lockdown prime London office transactions now completed are offering pricing confidence.
Since the end of August there have been a number of completions of such assets, including Link REIT's £380m acquisition of the Cabot in Canary Wharf and Hines' £78m acquisition of 7 Soho Square, W1 from Land Securities.
CBRE also remain positive: “Whilst year-on-year investment turnover in central London was 50% down at the end of Q3, at CBRE we are confident of a resurgent market in Q4,” says James Beckham, the firm’s head of central London investment. “Having just transacted at One London Wall Place, Q4 has started strongly and given consistent investor appetite across the risk spectrum we are looking forward to an active run up to the year end.”