Midtown set to buck Central London trend with Investment in Q1 to top £1 billion
7 April 2016
Midtown is on course for a stellar first quarter with Investment in commercial property set to comfortably exceed £1 billion.
Ahead of quarter end, we forecast that Investment in Midtown could total just over £1 billion, almost double the £567 million recorded in the fourth quarter of 2015.
The first quarter saw a number of significant transactions, notably Holborn Gate, 326-330 High Holborn, WC1 (£138m), High Holborn Estate, WC1 (£135m) and 5 Fleet Place, EC4 (£145m).
Whilst the larger lot sizes remain the domain of the Overseas Investor, UK Investors are still active behind this. So despite the impending European Referendum, Investor interest remains robust.
Alastair Hilton, Head of Investment, commented:
“We are on course for a strong first quarter of investment in Midtown, despite a slowdown in investment activity across Central London as a whole.
“With the European Referendum on the horizon we are undoubtedly seeing Overseas Investors becoming more circumspect, but in Midtown, its unique fundamentals are helping to sustain Investor interest. We do anticipate a pause in the second quarter, but it is worth noting that the occupational market in Midtown, which is characterised by a high volume of deals at the small-to-medium size range, is less affected by the political uncertainty than other Central London markets. For investors wishing to place capital now, Midtown is a compelling proposition.”
Estate Gazette's Shekha Vyas speaks to Farebrother's Head of Investment, Alastair Hilton on the key drivers of Midtown Investment. Click here to listen to the full podcast