The City of London investment market, which is made up of various districts including Core City, Midtown and Canary Wharf, recorded a total of £2.1 billion commercial property transactions in Q1 2019, this is only slightly down on the £2.4 billion recorded in Q1 2018. Over half of that investment was into the Core City market which is centred around the Bank of England, illustrating that prime assets remain the focus of many investors.

Dominic Amey, Head of City Investment at Colliers International, commented: ‘’Asian investors are certainly favouring the Core City at the moment, accounting for over a quarter of the transactions. We recorded an average initial yield in the core this quarter of 4.75%, which is highly attractive for such a prime market.’’

Recent examples of Asian investment into the City Core include, LKK’s acquisition of the Eastcheap Estate, EC3. The 31,838 sq ft multi let building, which sits next to the Hong Kong based corporation’s ‘Walkie Talkie’ at 20 Fenchurch Street was purchased from Thackeray Estates for £45 million and represented a yield of 4.57.

Mr Amey adds: “We’ve seen an increase in Asian capital targeting the UK and in particular London, since the EU referendum vote and for the first quarter of 2019 this seems to be concentrating on the Core City of London. This activity demonstrates a confidence in London as a global business destination where short term macro-economic and political uncertainty isn’t deterring investors who see sensible value in a highly established market.’’

For more information about the London market and the Asian market's appetite in London email Dominic Amey, Head of City Investment at Colliers International via the contact details below. 

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