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Billion Pound Deals Test London Investment Market

LONDON-Three massive investment transactions look set to test the strength of the London office market over the first half of 2001.

By Graham Parker | Updated on May 14, 2001

LONDON-Three massive investment transactions look set to test the strength of the London office market over the first half of 2001. The three deals – worth almost £1 billion ($1.42 billion) between them – involve landmark properties that attract international investors.

New market analysis from King Sturge, exclusive to GlobeSt.com, shows that investmetn in UK offices started to cool in the fist quarter of the year. But Angus McIntosh, Head of research at King Sturge, expects the drop in interest rates to stimulate demand from debt-financed buyers like private investors and property companies.

Biggest deal of the first quarter was Rotch Properties’ £250 million ($355 million) purchase of Woolgate Exchange in the City to show a yield of around 6.50 per cent. But two even bigger lots have come to the market in the West End. BP Pension Fund put the Berkeley Square estate on the market, and it is now under offer at £345 million ($490 million).

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