London commercial real estate attracts record first quarter investment, CBRE figures show, as overseas investors shrug off post-Brexit vote uncertainty

Francesca Washtell
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The Leadenhall Building was one of the mega-sales of the first quarter (Source: Getty)

Record investment flooded into London's commercial real estate market in the first quarter of this year.

There was a total of £4.9bn worth of transactions between January and March, according to data from CBRE released today.

Read more: Commercial property investment in London's West End hits record high

This was the highest ever in the first quarter of the year and the biggest quarterly total since the end of 2014.

Overseas investors shrugged off post-Brexit vote uncertainty, accounting for 80 per cent of the transactions by volume, up from 74 per cent in the fourth quarter of 2016.

Read more: For sale: The Cheesegrater - yours, for £1bn

A total of 13 deals worth £100m or more were transacted in the first quarter of 2017, compared with 11 the previous quarter. These include the Leadenhall Building, 122 Leadenhall Street (also known as the Cheesegrater), which was purchased by Hong Kong-based CC Land for £1.15bn.

Nine of the 13 of the mega-transactions amounting to £100m or more were purchased by overseas parties.

Read more: The first sign Brexit could have seriously damaged commercial real estate

"The momentum we experienced at the end of last year has shown no sign of abating in the early months of 2017 and London remains a central focus for international capital requirements," said Stephen Pearson, head of city investment at CBRE.

This is a great endorsement of London’s continued appeal and testament to its resilience and ability to adapt and diversify. Appetite from overseas investors for large lot sizes, particularly in the City, will be a key feature of the market for the remainder of the year.

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