London’s West End ‘picking up’ after £102m worth of deals bolsters high street
The West End showed signs of “picking up” in July as demand from businesses to secure a spot in London’s premier shopping district led to a cluster of five deals totalling £102.2m taking place.
So far this year some 58 property transactions have taken place and turnover year to date has reached £1.92bn.
This is already above its 2019 figure of 51, but still remains below its pre-pandemic average of 94, data from Savills revealed.
The popular district in the capital, which is home to a number of offices, restaurants and retail, was hit hard by the pandemic as shoppers could not hit the high street and less tourists were visiting the area.
But Stephen Down, executive director and chairman of central London and international investment for Savills, said there are signs the West End market is “picking back up.”
He said: “Although we’ve seen a decline in activity this year against the current economic backdrop, it’s encouraging to see large trades taking place and a healthy pipeline of activity for the remainder of the year, showing signs of the West End market picking back up.”
“So far the buyer audience has included investors from across the globe including unlevered, cash rich family offices, plus funds from the US and Europe, all seeking Core product and where predominantly the “sweet spot” for purchases is between £50m and £100m.”
Savills said the biggest deal was of office building Liberty House on 76 & 80 Hammersmith Road, W6 which was acquired for £48m by property investment firm McAleer & Rushe (MRP).
“There is no doubt that we are seeing increased appetite from leading brands who want a flagship presence in the West End,” Sarah Jaconelli, director of communications and campaigns at New West End Company, said.
“The district offers access to a highly desirable international and domestic customer base, facilitated by the world-leading transport infrastructure of the Elizabeth Line, and made all the more appealing by the upcoming public realm enhancement programme for Oxford Street.”
She added: “It seems that every week there is an exciting announcement of a new addition to the district, and another strategic property acquisition which reflects the long-term desirability of the area to investors, developers and brands alike.”