Asian investors reignite interest in Central London office market

Central London investment volumes totaled £1.65 billion (€1.9 billion/$2 billion) in first quarter 2023, according to CBR.

That volume is more than double fourth quarter 2022, which was the lowest level of investment activity on record set against a backdrop of rising inflation and interest rates. While volumes remain about half the quarterly 10-year average, first quarter 2023 may signal the start of a recovery in volumes.

The investment market was dominated by Asian capital in the first quarter, which made up 74 percent of all purchasing activity and 100 percent of activity more than £85 million (€97 million/$105 million). Deals included the purchase of St Katherine Docks by CDL, GIC’s £1 billion (€1.1 billion/$1.2 billion) first-quarter joint venture at Tribeca in Kings Cross, Obayashi’s purchase of 60 Gracechurch Street, and Gamuda’s acquisition of Winchester House, a new Malaysian entrant to the office market, forming a joint venture with Castlefo