London office investments hits £3.7b in second quarter 2016
Investment in London offices reached £3.74 billion ($4.88 billion) during the second quarter, an increase of 19 percent from the first quarter, according to BNP Paribas Real Estate. The total volume for the first half of 2016 is £6.88 billion ($8.97 billion), 12 percent ahead of the 10-year first-half average. Asia Pacific investors accounted for 40 percent of this total, purchasing £2.64 billion ($3.44 billion) in assets. Appetite from foreign investors was particularly marked in the City, where they made up 92 percent of capital deployed so far this year. The acquisition of Aldgate Tower, E1 by China Life and Brookfield for £346 million ($451 million) was the largest investment deal of the quarter. The office vacancy rate in London rose to 5.43 percent during the second quarter 2016, up from 4.72 percent during the first quarter, driven by rationalization on the part of occupiers as well as 2016 developments entering supply.