As predicted in our Q2 newsletter, Q3 has been a bumper quarter with over 1 billion of transactions taking place, representing a Q-on-Q increase of 85% and a 16% premium over the 5-year average for Q3 transaction volumes
The Local Authorities continue to be extremely active, representing 39% of transaction volumes, led by Spelthorne Borough Council s acquisition of Thames Tower, The Porter Building and The Charter Building for a combined price of 285 million. There were a number of institutional buyers who were disappointed to miss out, in particular for Thames Tower and The Porter Building.
The Local Authorities have been the dominant buyer base for any long-medium term income assets but are increasingly focussing on properties in borough or in neighbouring economic areas under guidance from Central Government
Overseas investors represented 17% of the transaction volumes by undertaking a few larger lot size deals. These were Valesco Group and AIP s acquisition of the Microsoft HQ at Thames Valley Park for 100,000,000, EPIC s acquisition of Pinnacle in Wimbledon for 40,210,000 and Dimah Capital s acquisition of 4, The Square on Stockley Park for 34,500,000.
For the institutional funds it was a subdued quarter except for M&G who succeeded in acquiring both Tor in Maidenhead for 35,000,000 and Strata in Staines for 46,500,000.
Private equity buying activity was limited except for ARES acquisition of the Equinox Portfolio from AEW
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