The average lot size for commercial property investments in the City of London reached almost £110m last month, up 52% on May 2016 levels, fresh data from Savills shows.
Turnover reached £665m across six deals, bringing the total for the year so far to £4.1bn across 53 deals, up 7% year-on-year, which equates to an average lot size for commercial property investments in the City of London of £109.2m in May.
Savills estimates that there are currently 24 deals under offer in the City totalling £1.4bn, with a high volume of larger building sales meaning that no fewer than ten of the largest available assets accounted for 80% of total availability last month.
Notable deals include CR Land/Colony North Star acquiring 20 Gresham Street, EC2 for circa £312m at 4% and £1,285 per sq ft.
Meanwhile, Evans Randall sold 33 Old Broad Street, EC2 for £260m at 3.9% and £1,360 per sq ft to Hong Kong listed investors SEA Holdings.
Felix Rabeneck, director in the City investment team at Savills, commented: “The City market continues to be attractive to global investors looking for trophy assets with strong covenants. This is evidenced by the average capital value for transactions over £100m reaching £1,135 per sq ft so far this year; up 19% on this time last year.”
Savills prime City yield remains at 4% with the West End prime yield currently at 3.25%.