Savills eyes trophy office deals to offset housing slideComments Off on Savills eyes trophy office deals to offset housing slide
For-sale signs will be hoisted over a number of trophy London office buildings before the end of the year, helping to pick up the slack of a weaker residential market, the boss of Savills has said.
Jeremy Helsby, chief executive of the property agent, revealed: “There is quite a good pipeline of major office sales coming up.”
He added: “Low vacancy rates and high rents across the City and West End all have the ingredients to make trophy buildings attractive (to investors).”
In the six months to June 30, commercial disposals helped push group revenue up 27% to £547 million. Underlying pre-tax profit rose 28% to £38.4 million.
Deals Savills advised on included Selfridges snapping up a block moments from its Oxford Street flagship for £90 million and fund Frogmore paying £219 million for the Notting Hill Estate, which included offices and shops.
The sales offset a revenue fall in the residential division, which suffered ahead of the May election with buyers concerned at the threat of a mansion tax.
Helsby said there was improvement now, but figures published today from Halifax show that average UK house prices in July dipped by 0.6% from the previous month to £198,883.
The shares fell 3p to 980p.