Flip through the latest issue of Gulf Weekly.
With over _2 billion of transactions exchanging in the past few weeks the Central London commercial property market continues to show its resilience and attraction to overseas investors.
Stephen Down, managing partner of specialist central London investment consultancy Gresham Down Capital Partners, said: "A few weeks ago the fear was that there was too much stock on the market but the appetite of buyers has been voracious.
"US opportunity fund Carlyle has just bought six London office buildings, comprising the White Tower portfolio, from receivers for over £670 million.
Gresham Down itself has been advising a private Eastern European investor who has just acquired Mitsubishi Estate Company's Bow Bells House, a trophy City asset for £140 million."
Mr Down is also advising a group of investors selling River Court, the £300 million European headquarters of Goldman Sachs in the City. "This is a good example of the type of trophy stock that appeals to the overseas market," he said. "It has been owned by the same group since it was developed in 2000 and is let to Goldman Sachs for another 15 years.
"It is a modern Grade A building secured to an international tenant on a long lease and the rent is low at only £36 per square feet overall compared with recent lettings on similar space at over £50 per sq/ft. It offers the investor access to the growth in rents over the next three to four years."
Mr Down says given the current scarcity of debt recent buyers have tended to be equity rich. But River Court 'unlike other deals comes with a fixed interest debt until 2016 representing over 80 per cent of the purchase'.
Mr Down pointed out the recent Qatari acquisitions such as Harrods in Knightsbridge for over £1.5 billion and Park House in Oxford Street a prime commercial and residential development, for £500 million, as further evidence of the weight of money looking to invest in trophy London assets.
He said there is also increasing evidence that Malaysian, Korean and Chinese investors are running their slide rules over Central London property and the appetite for London will remain strong.
