Total West End transaction volumes reached a record high of £3.85 billion in the first half of the year, according to a report from Savills. The figure represents a 22 per cent increase on the previous H1 best of £3.15 billion recorded in 2014.
Savills reports that June saw stellar results, with £899 million being transacted across 18 different deals. This, combined with growing investor interest in assets over £100 million, is the driving force behind the successful first half of 2015.
One of the largest deals in June, and the third largest of the year, saw Savills selling the 3.1 acre mixed use development, Notting Hill Gate Estate, for £219 million to Frogmore on behalf of Pears Group and La Salle Investment Management.
Also highlighted in the West End Investment Watch report is the high demand for prime retail assets in H1, with 145 Oxford Street and 368 Oxford Street sold for £31.5 million and £30 million respectively.
The research reveals that total investment in assets over £100 million during H1 stands at £1.88 billion, a 95 per cent increase on the £0.96 billion invested in the corresponding period last year.
Commenting on the findings, Director of Central London Investment at Savills, Paul Cockburn, said: “The West End’s record H1 turnover was driven by numerous larger transactions, reflecting significantly greater liquidity for bigger lot sizes and a more active debt market.
“Although stock is likely to be restricted over the summer months, we are expecting a range of opportunities to be presented in the autumn creating an equally strong second half of 2015.”
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