investment market dashboard - acrellp.com · investment market dashboard ... (en route) plc wault...

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QUARTERLY AND YEAR END SOUTH-EAST OFFICE INVESTMENT MARKET SNAPSHOT INVESTMENT VOLUMES YTD INVESTMENT VOLUMES Q4 INVESTOR SENTIMENT £3.34bn £1.17bn 2017 £1.17bn £825m 2016 £1.39bn 2015 £1.215m 2014 £1.56bn 2013 2017 £3.34bn £5.22bn 2016 £4.27bn 2015 £2.88bn 2014 £3.07bn 2013 7/10 Q4 INVESTMENT VOLUMES VS PREVIOUS YEARS ANNUAL INVESTMENT VOLUMES VS PREVIOUS YEARS Trending: Stronger Trending: Up Trending: Stable Trending: Stable 5.25% PRIME YIELDS JANUARY 2018 ACRE CAPITAL COMMENTARY INVESTMENT MARKET DASHBOARD OCCUPATIONAL MARKET SNAPSHOT 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 INVESTOR DEMAND CBD VS OUT OF TOWN KEY INVESTMENT TRANSACTIONS & KEY INVESTMENT AVAILABILITY FARNBOROUGH BUSINESS PARK DATE TRANSACTED DEC-17 PURCHASE PRICE £174,600,000 NIY 6.79% CAP VAL (PSF) £315 AREA (SQ FT) 554,677 TENANCY DETAILS MULTI-LET WAULT (YEARS) 5.8 PASSING RENT £PA (£PSF) £12,070,728 (£23.78) PURCHASER FRASERS BUXTON COURT, OXFORD DATE TRANSACTED DEC-17 PURCHASE PRICE £6,625,000 NIY 5.43% CAP VAL (PSF) £336 AREA (SQ FT) 19,696 TENANCY DETAILS UNIVERSITY OF OXFORD WAULT (YEARS) 7.9 PASSING RENT £PA (£PSF) £383,916 (£19.50) PURCHASER MARTIN’S PROPERTIES FOCAL POINT, LEATHERHEAD DATE TRANSACTED DEC-17 PURCHASE PRICE £8,030,000 NIY 6.07% CAP VAL (PSF) £344 AREA (SQ FT) 22,505 TENANCY DETAILS MULTI-LET WAULT (YEARS) 7.6 PASSING RENT £PA (£PSF) £519,964 (£23.10) PURCHASER MOLE VALLEY COUNCIL KEY DEALS 12 HAMMERSMITH GROVE DATE TRANSACTED DEC-17 PURCHASE PRICE C. £170,000,000 NIY C. 5.25% CAP VAL (PSF) £994 AREA (SQ FT) 170,985 TENANCY DETAILS MULTI-LET WAULT (YEARS) 13.0 PASSING RENT £PA (£PSF) £9,530,864 (£56.15) PURCHASER SPELTHORNE BOROUGH COUNCIL NATS, SOLENT BUSINESS PARK DATE TRANSACTED DEC-17 PURCHASE PRICE £82,000,000 NIY 5.23% CAP VAL (PSF) £314 AREA (SQ FT) 261,049 TENANCY DETAILS NATS (EN ROUTE) PLC WAULT (YEARS) 13.5 PASSING RENT £PA (£PSF) £4,577,977 (£17.54) PURCHASER MIDDLE EASTERN INVESTOR COLUMBIA, BRACKNELL DATE TRANSACTED OCT-17 PURCHASE PRICE £14,700,000 NIY 5.65% CAP VAL (PSF) £274 AREA (SQ FT) 53,590 TENANCY DETAILS MULTI-LET WAULT (YEARS) 3.1 PASSING RENT £PA (£PSF) £886,824 (£20.93) PURCHASER CLS ACQUIRED ACQUIRED CBD OOT INVESTMENT SUPPLY LEVELS 7/10 ACRE CAPITAL EXPECT 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 HEADLINE RENTS M1 M40 M4 M3 M25 M25 Aldershot Harrow Marlow Camberley Leatherhead Woking Croydon Epsom Sutton Kingston upon Thames Richmond Beaconsfield Henley-on-Thames Amersham High Wycombe Hatfield Hoddesdo Barnet Enfield Berkhamsted Hemel Hempstead Thame CENTRAL LONDON £38.00 READING £39.00 MAIDENHEAD £35.00 UXBRIDGE £31.50 WATFORD £27.50 FARNBOROUGH £55.00 CHISWICK £21.00 BASINGSTOKE £36.50 EALING £36.00 SLOUGH £25.00 BRACKNELL £34.50 STAINES £37.50 ST ALBANS £59.00 HAMMERSMITH £26.00 RICKMANSWORTH £34.00 GUILDFORD £33.50 HEATHROW £36.00 WINDSOR INCENTIVES VOIDS RENTAL MAP KEY AVAILABILITY CONTACTS WWW.ACRELLP.COM HOLLY RICHARDSON Partner [email protected] 020 3903 4371 07730 203428 WILL NELSON Associate [email protected] 020 3903 4370 07377 869621 EDWARD GAMBLE Partner [email protected] 020 3903 4373 07803 266214 MARK WILSON Partner [email protected] 020 3903 4369 07958 427643 JAMES LEACH Partner [email protected] 020 3903 4372 07551 434545 Trending: Stronger ONE YORK ROAD, UXBRIDGE DATE TO MARKET SEP-17 QUOTING PRICE £11,050,000 NIY 6.25% CAP VAL (PSF) £453 AREA (SQ FT) 24,398 TENANCY DETAILS MULTI-LET WAULT (YEARS) 8.1 PASSING RENT £PA (£PSF) £736,966 (£30.95) VENDOR AVIVA INVESTORS MICROSOFT UK HQ, THAMES VALLEY PARK, READING DATE TO MARKET SEP-17 QUOTING PRICE £115,000,000 NIY 5.50% CAP VAL (PSF) £460 AREA (SQ FT) 250,000 TENANCY DETAILS MICROSOFT WAULT (YEARS) 8.0 PASSING RENT £PA (£PSF) £6,755,100 (£27.00) VENDOR F1 REAL ESTATE UNILEVER HOUSE, LEATHERHEAD OFFICE PARK DATE TO MARKET OCT-17 QUOTING PRICE £74,340,000 NIY 6.0% CAP VAL (PSF) £421 AREA (SQ FT) 176,654 TENANCY DETAILS UNILEVER UK WAULT (YEARS) 6.2 PASSING RENT £PA (£PSF) £4,763,502 (£26.97) VENDOR TABUNG HAJI Trending: Stable 4, THE SQUARE, STOCKLEY PARK DATE TO MARKET OCT-17 QUOTING PRICE £32,200,000 NIY 6.75% CAP VAL (PSF) £397 AREA (SQ FT) 81,403 TENANCY DETAILS MULTI-LET WAULT (YEARS) 5.4 PASSING RENT £PA (£PSF) £2,327,466 (£28.83) VENDOR L&G SOLD 1.2% 3.7% 27.2% 22.3% 13.0% 8.1% 2% 22.3% Property Company Funds Private REIT Council Overseas Private Equity Owner Occupier ANNUAL BUYER PROFILE

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Page 1: INVESTMENT MARKET DASHBOARD - acrellp.com · investment market dashboard ... (en route) plc wault (years) 13.5 passing rent £pa ... unilever house, leatherhead office park

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

[email protected] 3903 437107730 203428

WILL NELSON

Associate

[email protected] 3903 437007377 869621

EDWARD GAMBLE

Partner

[email protected] 3903 437307803 266214

MARK WILSON

Partner

[email protected] 3903 436907958 427643

JAMES LEACH

Partner

[email protected] 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