Business and Real Estate

West End Investment – Central London

In October, we reported nine sales totalling £539 million in the West End, demonstrating the market’s sustained vigour. While total yearly turnover is currently £3.85 billion, it is 25% lower than the previous five-year average of £5.13 billion, but it is 30% more than last year’s corresponding amount. No one can help you related to your business and investment other than

Property Investment in London‘s West End has picked up pace. So, the October activity in the West End bodes well for a solid fourth quarter.

In October, the significant transaction was Ingka Group’s acquisition of Arcadia Group’s extended leasehold property at 214–218 Oxford Street, W1, through an open market procedure in which Savills advised the vendor jointly. The £378 million acquisition price indicates a capital value of £1,562 per square foot based on the net interior area of 241,990 square feet. It is thought that the purchaser would run its retail business, IKEA, from the bulk of the shop.

Following two failed starts with different parties, The Naval Club, 38 Hill Street, W1, has been bought with vacant possession by an unnamed Middle Eastern investor for a fee in the region of £35 million. This represents a capital value of £3,528 psf based on the projected net internal accommodation and highlights the premium that unoccupied freehold possibilities in the leading West End may achieve.

Further Investment Scope

The freehold stake in 4–5 Buckingham Gate, SW1, was also sold in October, putting to a close a marketing effort that began last summer, at a price in the area of £30m, equating to a capital value of £759 psf. Planning permission for renovation into a 53-key hotel, the building was sold with vacant possession to Middle Eastern investor Sidra Group by French investor Cofimar, who bought it in 2017 for £32 million.

Property investment in London has progressed in 2021. Yoo Capital purchased the freehold stake in The Odeon Cinema, 135 Shaftesbury Avenue, WC2. It did this in one of two off-market deals last month for a price thought to be £28.5m. The figure translates to £891 psf based on the GIA of 32,000 sq ft. The property is single-let to Odeon for the next five years. Hence, we believe Odeon’s presence in the building triggered/required a £3.5m premium to be paid to them. Obviously, payment would be done by the vendor upon transaction completion.

Investment Details

Other October deals included London & Regional acquiring the freehold stake in former school Colet Court, 100 Hammersmith Road, W6, for £18.5m (4.74 per cent / £408 psf). The Association of British Travel Agents (ABTA) has sold 68–71 Newman Street to CBREi for £18.14 million. Hence, the figures include : 4.70 per cent / £1,043 psf. 112–116 New Oxford Street, WC1, which Campari’s Italian Family Office purchased from MARK for £15.15 million. So, these figures are 3.95 per cent / £1,467 psf. The freehold stake in The Curtis Building, W6, which Savills sold with vacant possession. Savills made the deal for £9 million (£521 per square foot). Hence, Savills did this on behalf of Grosvenor Securities Limited.

Please also visit: Flat for sale in London.

In October, Savills’ single leisure transaction was the sale of Shaftesbury Plc’s freehold stake in 10 Irving Street, WC2. A Private Investor purchased for more than the quotation level of £6.5m. The property consists of restaurant space and four residential flats above. So, the restaurant operator Bella Italia accounting for 71% of the income (lease ends in 2029).

With over £3 billion known to be under offer and over twenty possibilities released in October alone, we anticipate a busy year-end period and pricing to reflect the market-wide theme of polarisation. Savills’ top West End yield remains at 3.25 per cent based on data observed this month. The net initial and equivalent results for the MSCI are 3.45 per cent and 4.7 per cent, respectively.

Buckingham Apartments

The Buckingham is London’s most stylish residence. It has a prominent location opposite Buckingham Palace and Coco Chanel’s designer competitor’s house.

The State performed the division into flats in 2008. Hence, the prices for The Buckingham apartments varied from £4.35 million to £18 million. This was for two-bedroom apartments and a three-bedroom penthouse with two private terraces at its sale in 2017.

According to Savills, it’s also a good investment. The Buckingham Palace Quarter surpasses all other top central London locations. This happens in terms of price per square foot, including prominent competitors St James’s and South Kensington.

According to Matt Parish, a Savills property agent, The Buckingham is the closest house to the Buckingham Palace. It is a development that stands up to the majesty of its near neighbour. And that’s before we even get into its trendy past.

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