Institutional sales of commercial property in the West End have topped £2.7bn in the year-to-date, the highest volume ever recorded, according to estate agent Savills.
Standard Life, Aberdeen Asset Management, DTZ Investors, TH Real Estate, Blackrock and Aviva have each sold more than £100m of assets since January, with vendor institutions making up 55 per cent of West End sales this year.
In a boom driven by the fall in the value of the pound and a subsequent influx of overseas investors, sales are expected to reach £3bn by year-end. This will significantly outpace the previous record of £2.3bn in 2013.
“We have seen staggering interest from overseas investors since the summer and currency benefits have been a key part of this,” said Paul Cockburn, director in the central London investment team at Savills.
“Some prices have now surpassed all previous highs demonstrating the long lasting appeal of London property.”
Notable deals from institutions this year have included Standard Life’s record sale of 13-14 Curzon Street at over £3,000 per sq ft (£32,292 per sq m) this autumn and Blackrock’s sale of the Sony headquarters on Great Marlborough Street for £104m in September.