According to Savills research, Middle Eastern investment in London is expected to top £1.38 billion in 2018, up 30% on last year’s activity, says Savills, and ahead of 2016 also (9%).
Key deals include: Soor Capital (advised by Savills) acquiring 23-26 Austin Friars, London EC2 for £39.05 million in the group’s first investment in the UK. The deal represents a net initial yield of 5.05%, equating to £700 per sq ft; Dubai based investor, SRG Holding Limited, acquiring the freehold interest in Victoria Beckham's global headquarters at 202 Hammersmith Road, London W6 for £16.8 million (Savills advised the vendor, one of Aberdeen Standard Investments’ segregated mandates). The transaction represents a net initial yield of 4.42% and a capital value of £1,140 per sq ft.
Hassan Farran, director in the cross-border investment team at Savills, says: “There has been a notable uptick in transactional activity by Middle Eastern investors in London in 2018 when compared to the 18 months that immediately followed the EU referendum. These investors, many of whom are active in the UK and mainland Europe, are attracted to London’s liquidity and comparative value, and the resilience London’s investment market continues to demonstrate.”