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Q U A R T E R L Y A N D Y E A R E N D S O U T H - E A S T O F F I C E I N V E S T M E N T M A R K E T S N A P S H O T

I N V E S TM E N T V O LU M E S Y T D I N V E S TM E N T V O LU M E S Q 4 I N V E S TO R S E N T I M E N T

£3.34bn £1 .17bn

2017 £1.17bn

£825m2016

£1.39bn2015

£1.215m2014

£1.56bn2013

2017 £3.34bn

£5.22bn2016

£4.27bn2015

£2.88bn2014

£3.07bn2013

7 / 1 0

Q 4 I N V E S TM E N T V O LU M E S V S P R E V I O U S Y E A R S

A N N U A L I N V E S TM E N T V O LU M E S V S P R E V I O U S Y E A R S

Trending: Stronger

Trending: Up Trending: Stable Trending: Stable

5.25%

P R I M E Y I E L D S

J A N U A R Y 2 0 1 8

A C R E C A P I T A L C O M M E N T A R Y

I N V E S T M E N T M A R K E T D A S H B O A R D

O C C U P A T I O N A L M A R K E T S N A P S H O T

• Sustained Q4 investment volumes and number of deals aided by the increased availability and quality of stock, with headline grabbing deals across the SE, as well as in the ‘Big-6’

• No let up in Council buying activity at 30% of market by transaction volumes in Q4 and no evidence this will be curtailed anytime soon

• Multi let offices in Greater London or strong SE towns and long income deals still in high demand

• Non-institutional buyers capitalising upon cautious approach taken by others

• Out-of-town offices continue to represent “real” value 

I N V E S TO R D E M A N D C B D V S O U T O F TO W N

K E Y I N V E S T M E N T T R A N S A C T I O N S & K E Y I N V E S T M E N T A V A I L A B I L I T Y

FAR N BOROUG H B US I N E SS PAR K

D A T E T R A N S A C T E D D E C - 1 7

P U R C H A S E P R I C E £ 1 7 4 , 6 0 0 , 0 0 0

N I Y 6 . 7 9 %

C A P V A L ( P S F ) £ 3 1 5

A R E A ( S Q F T ) 5 5 4 , 6 7 7

T E N A N C Y D E T A I L S M U L T I - L E T

W A U L T ( Y E A R S ) 5 . 8

P A S S I N G R E N T £ P A ( £ P S F ) £ 1 2 , 0 7 0 , 7 2 8 ( £ 2 3 . 7 8 )

P U R C H A S E R F R A S E R S

B UXTON COU RT, OXFOR D

D A T E T R A N S A C T E D D E C-17

P U R C H A S E P R I C E £6,625,000

N I Y 5.43%

C A P V A L ( P S F ) £336

A R E A ( S Q F T ) 19,696

T E N A N C Y D E T A I L S UNIVERSIT Y OF OXFORD

W A U L T ( Y E A R S ) 7.9

P A S S I N G R E N T £ P A ( £ P S F ) £383,916 (£19.50)

P U R C H A S E R MARTIN’S PROPERTIES

FOCAL POI NT, LEATH E R H EAD

D A T E T R A N S A C T E D DEC-17

P U R C H A S E P R I C E £8,030,000

N I Y 6.07%

C A P V A L ( P S F ) £344

A R E A ( S Q F T ) 22,505

T E N A N C Y D E T A I L S MULTI-LET

W A U L T ( Y E A R S ) 7.6

P A S S I N G R E N T £ P A ( £ P S F ) £519,964 (£23.10)

P U R C H A S E R MOLE VALLEY COUNCIL

K E Y D E A L S

12 HAM M E RS M ITH G ROVE

D A T E T R A N S A C T E D D E C - 1 7

P U R C H A S E P R I C E C. £170,000,000

N I Y C . 5 .25%

C A P V A L ( P S F ) £994

A R E A ( S Q F T ) 170,985

T E N A N C Y D E T A I L S M U L T I - L E T

W A U L T ( Y E A R S ) 13.0

P A S S I N G R E N T £ P A ( £ P S F ) £9,530,864 (£56.15)

P U R C H A S E R SPELTHORNE BOROUGH COUNCIL

NATS, SOLE NT B US I N E SS PAR K

D A T E T R A N S A C T E D D E C - 1 7

P U R C H A S E P R I C E £82,000,000

N I Y 5.23%

C A P V A L ( P S F ) £314

A R E A ( S Q F T ) 261,049

T E N A N C Y D E T A I L S N AT S (E N R O U T E ) P L C

W A U L T ( Y E A R S ) 13.5

P A S S I N G R E N T £ P A ( £ P S F ) £4,577,977 (£17.54)

P U R C H A S E R M I D D L E E A S T E R NI N V E S T O R

COLUMBIA, BRACKNELL

D A T E T R A N S A C T E D O C T-17

P U R C H A S E P R I C E £14,700,000

N I Y 5.65%

C A P V A L ( P S F ) £274

A R E A ( S Q F T ) 53,590

T E N A N C Y D E T A I L S M U L T I - L E T

W A U L T ( Y E A R S ) 3.1

P A S S I N G R E N T £ P A ( £ P S F ) £886,824 (£20.93)

P U R C H A S E R CLS

A C Q U I R E D A C Q U I R E D

C B D

O OT

I N V E S TM E N T S U P P LY L E V E L S

7 / 1 0

A C R E C A P I T A L E X P E C T

• Pricing for prime and refurbished core+ and assets to remain strong especially in locations expected to benefit from rental growth and in locations benefitting from regeneration or infrastructure improvements

• Income rather than capital growth to drive returns and this will steer investment demand

• Secondary assets’ investor appeal to remain subdued

• Flux in town rankings to continue with some towns to ‘out-perform’ - especially where infrastructure changes are still taking effect

• Landlords who have undertaken high-quality, contemporary refurbishments with a focus on amenity, service provision and well-being to be rewarded in occupational performance

H E A D L I N E R E N T S

M1M40

M4

M3 M25

M25

Aldershot

HarrowMarlow

Camberley

Leatherhead

Woking

Croydon

Epsom

Sutton

Kingston upon Thames

Richmond

Beaconsfield

Henley-on-Thames

Amersham

High Wycombe

Hatfield Hoddesdon

Barnet Enfield

BerkhamstedHemel

HempsteadThame

CENTRALLONDON

£38.00READING

£39.00MAIDENHEAD

£35.00UXBRIDGE

£31.50WATFORD

£27.50FARNBOROUGH

£55.00CHISWICK

£21.00BASINGSTOKE

£36.50EALING£36.00SLOUGH

£25.00BRACKNELL

£34.50STAINES

£37.50ST ALBANS

£59.00HAMMERSMITH

£26.00RICKMANSWORTH

£34.00GUILDFORD

£33.50HEATHROW£36.00WINDSOR

I N C E N T I V E S V O I D S

R E N TA L M A P

K E Y A V A I L A B I L I T Y

C O N T A C T S

W W W . A C R E L L P . C O M

HOLLY RICHARDSON

Partner

holly.richardson@acrellp.com020 3903 437107730 203428

WILL NELSON

Associate

will.nelson@acrellp.com020 3903 437007377 869621

EDWARD GAMBLE

Partner

edward.gamble@acrellp.com020 3903 437307803 266214

MARK WILSON

Partner

mark.wilson@acrellp.com020 3903 436907958 427643

JAMES LEACH

Partner

james.leach@acrellp.com020 3903 437207551 434545

Trending: Stronger

ON E YOR K ROAD, UXB R I DG E

D A T E T O M A R K E T S E P - 1 7

Q U O T I N G P R I C E £ 1 1 , 0 5 0 , 0 0 0

N I Y 6 . 2 5 %

C A P V A L ( P S F ) £ 4 5 3

A R E A ( S Q F T ) 2 4 , 3 9 8

T E N A N C Y D E T A I L S M U L T I - L E T

W A U L T ( Y E A R S ) 8 . 1

P A S S I N G R E N T £ P A ( £ P S F ) £ 7 3 6 , 9 6 6 ( £ 3 0 . 9 5 )

V E N D O R A V I V A I N V E S T O R S

M ICROSOFT U K HQ, THAM E S VALLEY PAR K, R EADI NG

D A T E T O M A R K E T S E P - 1 7

Q U O T I N G P R I C E £ 1 1 5 , 0 0 0 , 0 0 0

N I Y 5 . 5 0 %

C A P V A L ( P S F ) £ 4 6 0

A R E A ( S Q F T ) 2 5 0 , 0 0 0

T E N A N C Y D E T A I L S M I C R O S O F T

W A U L T ( Y E A R S ) 8 . 0

P A S S I N G R E N T £ P A ( £ P S F ) £ 6 , 7 5 5 , 1 0 0 ( £ 2 7 . 0 0 )

V E N D O R F 1 R E A L E S T A T E

U N I LEVE R HOUS E, LEATH E R H EAD OFFICE PAR K

D A T E T O M A R K E T O C T - 1 7

Q U O T I N G P R I C E £ 7 4 , 3 4 0 , 0 0 0

N I Y 6 . 0 %

C A P V A L ( P S F ) £ 4 2 1

A R E A ( S Q F T ) 1 7 6 , 6 5 4

T E N A N C Y D E T A I L S U N I L E V E R U K

W A U L T ( Y E A R S ) 6 . 2

P A S S I N G R E N T £ P A ( £ P S F ) £ 4 , 7 6 3 , 5 0 2 ( £ 2 6 . 9 7 )

V E N D O R T A B U N G H A J I

Trending: Stable

4, TH E SQUAR E, STOCKLEY PAR K

D A T E T O M A R K E T O C T - 1 7

Q U O T I N G P R I C E £ 3 2 , 2 0 0 , 0 0 0

N I Y 6 . 7 5 %

C A P V A L ( P S F ) £ 3 9 7

A R E A ( S Q F T ) 8 1 , 4 0 3

T E N A N C Y D E T A I L S M U L T I - L E T

W A U L T ( Y E A R S ) 5 . 4

P A S S I N G R E N T £ P A ( £ P S F ) £ 2 , 3 2 7 , 4 6 6 ( £ 2 8 . 8 3 )

V E N D O R L & G

S O L D

1.2%3.7%

27.2%

22.3%

13.0%

8.1%

2%

22.3%

Property Company

Funds Private

REIT

Council

Overseas Private EquityOwner Occupier

A N N U A L B U Y E R P R O F I L E