September sees surge in West End availability
Savills recorded £421 million of investment across 14 transactions in September, the highest number of monthly transactions so far this year, with an average lot size of £30.1 million. Cumulative investment volumes now stand at £3.8 billion across 80 transactions, up 4% on the ten-year average and 34% on the five-year average.
The largest transaction in September was the sale of the Notting Hill Gate Estate by Frogmore and Morgan Stanley. The estate, comprising the North, South and East Buildings, was marketed in March 2025 at a guide price of £180 million, reflecting 5.15% and £972 per sq ft. During the process, consideration was given to splitting the estate. The North and South Buildings, comprising multi-let retail and offices, single let to The Office Group and OVO, were acquired by a North American private investor for £125 million, reflecting 7.03% and £869 per sq ft. The East Building, comprising multi-let retail and vacant offices on the upper floors, was acquired separately by TPG Angelo Gordon for £23.5 million, reflecting £506 per sq ft. The split sale reflects ongoing investor preference for digestible lot sizes.
Other notable transactions included Valorem’s off-market acquisition of 1–5 Poland Street, W1, from Aquarelle for £41.0 million (very similar to entry price in August 2021), reflecting 4.34% and £1,518 per sq ft. The freehold building comprises 27,016 sq ft of office accommodation, single let to Williams Lea Limited to July 2027, at a passing rent of £1.9 million per annum, reflecting £70.33 per sq ft. The pricing achieved reflects continued demand for well-located West End assets offering short income and repositioning potential, as investors continue to seek opportunities to capture rental reversion through refurbishment and re-letting.
Savills advised Picton on the disposal of its freehold interest in the Stanford Building, 12–14 Long Acre, for £34.5 million, reflecting £1,682 per sq ft. The building occupies a prominent Covent Garden position with triple-aspect frontage. It underwent comprehensive redevelopment in 2020, creating 20,500 sq ft of best-in-class retail and office workspace. The ground-floor retail unit is currently leased to Lush, while the four upper floors are fully let to Blackwood Recruitment, Medallia, and Picton.
September recorded a sharp increase in new sales, with 25 properties being marketed at a combined quoting price of £798 million. This represents a 67% increase to the 16 properties marketed in September 2024. The volume of assets now being marketed will provide an important test of investor depth and competitive tension amid higher levels of supply.
Among the most notable sales brought forward in September, Savills is advising Union Investment on the sale of its leasehold interest in The Copyright Building, 29–33 Berners Street, W1 (118 years unexpired at 12.50% gearing), with a guide price of £160 million (4.39% and £1,493 per sq ft). The building is let to Capita Business Services until 2037 and sublet to Netflix until 2032, providing long-income security in a prime Fitzrovia location.
Savills is advising Joint Treasure on the sale of its freehold interest in 10 Stratton Street, W1, quoting £100 million (£2,406 per sq ft). The property comprises 41,571 sq ft of offices with short-term income, offering potential to implement a core-plus business plan and capture rental reversion in a prime Mayfair location.
Savills prime yield remains at 3.75%, while the five-year SONIA swap rate stands at 3.54%.