It Has Been a Strong Start to The Year With The Agency World Keeping Busy

By Julianah Ashama
CoStar Research

13 May 2022 | 13:12

The recent CoStar Awards for the first quarter of 2022 recognised star performers in a market rebounding as the economy reopens after the shutdowns enforced by the pandemic.

The investment figures for 2022 have made for good reading in many areas, particularly when compared with how things were a year ago. Investment volumes into UK commercial property in March reached £4.5 billion, taking the first quarter total to £13 billion, 10% above the volume in the first quarter of 2021, according to Colliers.

Once again cross-border capital was a big driver, with Colliers reporting such deals accounted for almost 60% of all activity during the quarter. US and Asia-Pacific investors were particularly acquisitive as the easing of travel restrictions meant they could get to the UK market for site visits and meetings, not that US buyers had really gone away.

The London office market was notably hot, lifted by a number of headline-grabbing buys. Savills reports there was £3.3 billion transacted in the City, a year-on-year increase of 540% and 27% higher than the previous record in the first quarter of 2007, while £1.91 billion of property sold in the West End, a 60% increase on the 5-year average and up 267% on the first quarter of 2021.

Not surprisingly there have been strong showings in CoStar’s Investment Agency league tables, from the national players and from niche operators.

National Sales and Acquisitions

Eastdil hit the the top spot for sales in the first quarter of 2022, boosted by its involvement in the sale of The Scalpel in the City of London, on behalf of W.R. Berkley Corporation,  for £718 million.

Savills ranked second with significant transactions including representing M&G on the sale of the ‘Bow &  Arrow’ portfolio of seven industrial assets to M7 and Oxford Properties for £202.5 million. Boutique purpose built student homes adviser Harris Associates came a close third after advising Fusion Students and Cain International on a £1.5 billion joint venture that will see the  duo develop 9,000 student beds in major cities.

Not included is Google’s purchase of its office space at Central Saint Giles which is recorded as an owner occupier transaction. Cushman & Wakefield’s role advising the vendor, alongside its role advising on the sale of The Scalpel, among a string of other transactions, would have taken it into second spot.

JLL took the top position in the first quarter acquisitions table, after advising South  Korea’s NPS on the purchase of 5 Broadgate from CK Asset Holdings for £1.2 billion.  

Cushman & Wakefield’s second placing followed its advice to Cain International  on the purchase of a logistics portfolio from Firethorn Trust for £550 million, and Ikea parent Ingka’s acquisition of 214-236 Oxford Street for £378 million. TT&G Partners ranked third after advising Moda Living and Ares on the purchase of 1 Nine Elms Lane in Battersea for £340 million.

Niche Sales and Acquisitions

Harris Associates topped the sales table for niche agencies by a  considerable margin, thanks to its involvement in the £1.5 billion purpose built student accommodation joint venture between Fusion Students and Cain International.

DTRE’s role as Kessler Real Estate Group’s adviser in the disposal of International Business Park in Stratford for £185.5 million aided its second place ranking. Michael Elliott’s representation of MARK in the £150 million sale of Bond Street House in London’s Mayfair was one of  the deals that pushed the firm into third place on the sales table.  

TT&G Partners topped the acquisitions table after advising Ares on the purchase  of Westway Park near Glasgow for £109 million and Hestia on the acquisition of the Anston House build-to-rent scheme in Brighton for £108 million.

ACRE Capital Real  Estate came in second in part thanks to its role representing Valor Europe on the £143 million sale of a former Carpetright warehouse in Purfleet, Essex. BH2 secured third place in the acquisitions table after brokering the sale of 20 Gracechurch Street, on behalf of  Aviva and Obayashi Corporation, for £195 million.