The London office market’s strong underlying fundamentals and pent up investor demand resulted in several deals closing in December, including Allianz £400m purchase of a 75% stake in a British Land portfolio. There was a notable rebound in activity in Q4, as investors moved to deploy the dry powder amassed during the quieter quarters into assets delivering long-term income opportunities.
According to the latest research from Knight Frank, 2020 saw £9.4 billion worth of deals complete, with December seeing £2bn of investment pour into the market to close the year on a strong and positive note.
The momentum is expected to continue into 2021, with the London office market now having 58% more stock available than at the beginning of last year and greater clarity following the EU trade deal.
Opportunistic investors will target assets in the City and West End given that London’s office yields outstrip most major European gateway cities.
Source : Company