The Weekly Wrap
Investors show confidence in ‘Booming’ City of London
The City of London’s appeal as a major hub for
overseas investors seems as prevalent as ever with latest figures showing that
the proportion of money being pumped into the capital’s commercial property has
hit a record high.
According to a report, foreign buyers have
accounted for 92% of the total investment in the third quarter, which has
helped to drive the City of London’s booming office space market in the past
In the second quarter of 2018 the overall
investments have slipped from £5.2bn to £4.1bn in the third quarter, but in the
three months to the end of September, European investment has more than doubled
after hitting £1.7bn.
Appetite for skyscrapers and major office blocks
has largely been dominated by Asian buyers in the last 12 months, but several
landmark deals from major European investors caught the headlines during the
Amancio Ortega, the founder of fashion chain Zara,
has recently bought the Adelphi building for £550m using his real estate arm,
Ponte Gadea, as German investor Deka snapped up £460m Victoria’s Verde office
“London office investment volumes continue to be supported
by a robust occupational market with low vacancy levels, and take-up well above
the 10-year average.
“Attractive yields relative to other European
cities, coupled with the comparative weakness of sterling, mean we have seen
investors from all corners of the globe hungry to deploy capital in London,”
said CBRE’s head of London investment properties, James Beckham. He added
“There may be some hesitancy from a few investors over the next six months as
we enter the latter stages of Brexit negotiations, but total investment volumes
for the year look set to be broadly on par with 2017, once again highlighting
the strength of demand for London assets.”
CBRE have released figures which came after a
report from Cushman and Wakefield showed that London has held its position as
the top city for property investment in 2018 for the ninth time in the last ten
Korean investor agrees £120m Cannon Green deal
According to commercial real estate research house, CoStar, terms
have been agreed for the sale of prominent refurbishment Cannon Green. It is
understood that the price reflects a net initial yield of 5%.
The prime City of London development is currently owned by Ocubis
with Kiwoom, a South Korean investor, believed to be the purchaser. The
acquisition would be Kiwoom’s first in London.
John Hunt, the founder of ‘Foxtons’ has instructed
one of the real estate providers to sell the freehold interest in Cannon Green
for a capital value of £1,089 per sq ft. Ocubis let to nine office tenants and
two retail occupiers which produces £6.41m per annum reflecting £58.25 per sq
ft. The building has a new double-height reception podium installed and
Kiwoom which has 35.5 trillion won (£24bn) in
assets under management is no stranger in the UK as it has already financed a
property in England. In August, it was understood that Kiwoom provided a £35m
senior loan against a portfolio of 110 care homes, one of the largest care home
operators in Britain, HC-one. This was the first investment by a South Korean
institution in a foreign senior care facility.
Cannon’s Green’s tenancy has been weighted at
unexpired lease term of 12 years to expire and 9 years to the lease breaks.
old man receives Freedom of the City of London award
A man who lived through the ‘Zeppelin Raid’ and two world
wars has received the Freedom of the City of London.
Manny Blankett born on October 17th 1917, the
oldest man currently living in the Square Mile, was awarded the honour by Jason
Pritchard who nominated him at a ceremony on Wednesday. He said “Mr Blankett
really deserved to be spoilt”.
The Freedom of the City dates all the way back to 1237 and is
given for outstanding contributions to London life. Mr Blankett has lived
through World War 1 and the Blitz and travelled to India before serving in
World War 2.
"It took a month to get there. It was quite a
thing," said Mr Blankett.
Manny has worked as a hairdresser within the family business
and also as a lifeguard at the Serpentine Lido, Hyde Park.
Mr Pritchard said: "I am really chuffed we could do this
for Manny and give him his special day. He really deserves to be spoilt. He is
such a special individual who is defying his age.”
"Even at 101 years old he is still so nimble on his feet
and mentally he is as bright as a button” Jason added.
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