Central London September Report - Leasing Levels Exceed Last Year But Take-Up Weakens
Take-up dropped 58% in Central London to 0.6m sq ft with only the West End higher over the month.
Availability in Central London fell marginally to 15.0m sq ft.
Active demand fell to 9.3m sq ft - its lowest level since January.
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Thursday, 9 September 2010
Wednesday, 8 September 2010
UK Property Returns Steady in August
CB Richard Ellis’ latest UK Monthly Index shows that the All Property total return slowed only marginally in August, to 0.8% from 0.9% in the previous month. Capital growth increased by 0.3% for the month due to a small amount of yield compression, as rental values remained unchanged from July. August’s return brings the year-to-date total return to 12.3%, with capital values up 7.5% in 2010.
The CB Richard Ellis Monthly Index showed:
- All Property total return was 0.8% in August, with annual returns of 26.3%.
- All Property capital growth was 0.3% in August, with values up 7.5% since the start of the year.
- The strongest performing market sub-sector over the month was again Central London offices, which recorded total returns of 1.0% and capital growth of 0.6%.
- All Property rental values were flat over the month, but down 1.0% in 2010.
- All Property equivalent yields were unchanged for the third successive month at 6.9%.
The CB Richard Ellis Monthly Index showed:
- All Property total return was 0.8% in August, with annual returns of 26.3%.
- All Property capital growth was 0.3% in August, with values up 7.5% since the start of the year.
- The strongest performing market sub-sector over the month was again Central London offices, which recorded total returns of 1.0% and capital growth of 0.6%.
- All Property rental values were flat over the month, but down 1.0% in 2010.
- All Property equivalent yields were unchanged for the third successive month at 6.9%.
Tuesday, 17 August 2010
Foreign buyers cause London commercial property investment to boom
Foreign buyers cause London commercial property investment to boom. A new report has revealed that commercial property investment activity in London has boomed over the last few months due to rising levels of interest from international buyers.
According to CB Richard Ellis, strong demand resulted in central London investment volumes increasing significantly during the second quarter of 2010, which saw turnover rise by 57 per cent to reach £1.9 billion.
According to CB Richard Ellis, strong demand resulted in central London investment volumes increasing significantly during the second quarter of 2010, which saw turnover rise by 57 per cent to reach £1.9 billion.
Friday, 13 August 2010
Central London Property Investments Rise to £1.9bn
Central London investment volumes rose sharply during the second quarter as strong investor demand was satisfied following an increase in stock on the market, reports Investor Today; Investment turnover rose 57% over the quarter to reach £1.9billion.
Mike Edwards, Head of City Investment, CB Richard Ellis, said: "With investor demand still strong, investment volumes are expected to remain high. Overseas buyers remain very active in the market and accounted for 62% of total investment volume. The acquisition of the Knightsbridge Estate pushed Middle Eastern investors’ share of Central London investment purchases to 45%.
"The Germans were still quite active and were responsible for 11% of investments. On the domestic side, UK property companies and UK institutions continued to show interest in the market and accounted for 19% and 14% of investments respectively."
Prime office yields fell to 5.5% in the City and 4.25% in the West End – prime yields have compressed in each market by 125 basis points since the middle of last year.
Mike Edwards, Head of City Investment, CB Richard Ellis, said: "With investor demand still strong, investment volumes are expected to remain high. Overseas buyers remain very active in the market and accounted for 62% of total investment volume. The acquisition of the Knightsbridge Estate pushed Middle Eastern investors’ share of Central London investment purchases to 45%.
"The Germans were still quite active and were responsible for 11% of investments. On the domestic side, UK property companies and UK institutions continued to show interest in the market and accounted for 19% and 14% of investments respectively."
Prime office yields fell to 5.5% in the City and 4.25% in the West End – prime yields have compressed in each market by 125 basis points since the middle of last year.
Thursday, 12 August 2010
Shaftesbury West End Property Port Folio Flourishes
London-focused property company Shaftesbury (SHB.L) remains on the hunt for new buys in its core West End market, as its enduring status as a tourist magnet helps to offset property market chills sweeping across Britain,Reuters reports.
"Although much uncertainty persists regarding the future direction of both the domestic and international economies, London's West End continues to flourish, thanks to unrivalled attractions which bring growing numbers of visitors," Shaftesbury said in a trading update from Apr. 1 to date.
"We are confident that the underlying strengths of the locations in which we invest and our management strategy will continue to deliver sustained out-performance in income and capital values," the statement said.
Shaftesbury, which owns more than 500 shops, restaurants and bars in the West End, has bought 63 million pounds ($99 million) of property in the 10 months to July 31 and has committed debt facilities of 575 million pounds to fuel a further investment spree.
It said completion of its St Martin's Courtyard development, part of a joint venture with the Mercers' Company in Covent Garden, was due in phases from this autumn.
To date, 72 percent of the scheme's space has been let, pre-let or is under offer, generating a total rental value of 10.5 million pounds. It said it was seeing "active interest" in the remaining space.
"Although much uncertainty persists regarding the future direction of both the domestic and international economies, London's West End continues to flourish, thanks to unrivalled attractions which bring growing numbers of visitors," Shaftesbury said in a trading update from Apr. 1 to date.
"We are confident that the underlying strengths of the locations in which we invest and our management strategy will continue to deliver sustained out-performance in income and capital values," the statement said.
Shaftesbury, which owns more than 500 shops, restaurants and bars in the West End, has bought 63 million pounds ($99 million) of property in the 10 months to July 31 and has committed debt facilities of 575 million pounds to fuel a further investment spree.
It said completion of its St Martin's Courtyard development, part of a joint venture with the Mercers' Company in Covent Garden, was due in phases from this autumn.
To date, 72 percent of the scheme's space has been let, pre-let or is under offer, generating a total rental value of 10.5 million pounds. It said it was seeing "active interest" in the remaining space.
Wednesday, 11 August 2010
Dubai World Sell Off West End Property
Istithmar World,the overseas investment arm of Dubai World, has reportedly sold an office building on London’s Trafalgar Square for $272 million. Grand Buildings, the landmark Victorian office property in London’s West End, was bought by a private Russian investor, according to various reports.
The sale of the London property came as no surprise as Dubai World, which manages a group of businesses, has said it planned to sell assets to repay creditors as it seeks to renegotiate the terms of $23.5 billion in debt.
In November, Istithmar sold two properties in the same district to Great Portland Estates Plc for £10 million plus a share of the buildings’ future profits.
Istithmar bought the 200,000 square-foot Grand Buildings in 2005 for £155 million five years ago. Grand Buildings includes retail outlets and office space, which is let to Enterprise Oil. The property was constructed in the 1870s
The sale of the London property came as no surprise as Dubai World, which manages a group of businesses, has said it planned to sell assets to repay creditors as it seeks to renegotiate the terms of $23.5 billion in debt.
In November, Istithmar sold two properties in the same district to Great Portland Estates Plc for £10 million plus a share of the buildings’ future profits.
Istithmar bought the 200,000 square-foot Grand Buildings in 2005 for £155 million five years ago. Grand Buildings includes retail outlets and office space, which is let to Enterprise Oil. The property was constructed in the 1870s
Friday, 30 July 2010
West End Retail Market is Booming
The West End is soon to host a new luxury brand as Chanel, one of the most recognized names in luxury and haute couture fashion. are opening a store in Bond Street.
Central London top end shopping has not been affected by the recession, as the weak pound has provided incentive for overseas shoppers spending sprees in the West End.The New Chanel shop will sit between Chaumet and Moussaieff on the west side of New Bond Street.
The addition of such a prestigious name to the Bond Street list which includes Cartier, Jimmy Choo and Furla is a sure sign that in the traditionally expensive end of London Shopping is still booming.
Central London top end shopping has not been affected by the recession, as the weak pound has provided incentive for overseas shoppers spending sprees in the West End.The New Chanel shop will sit between Chaumet and Moussaieff on the west side of New Bond Street.
The addition of such a prestigious name to the Bond Street list which includes Cartier, Jimmy Choo and Furla is a sure sign that in the traditionally expensive end of London Shopping is still booming.
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