Savills closes the sale of the third £100 million-plus deal of 2026
May saw eight deals exchange, amounting to £214.9 million of turnover, demonstrating a healthy flow of smaller deals and one £100 million-plus transaction, following a fallow April, which saw the rare occurrence of no deals during the month. The year-to-date turnover volume at the end of May stands at £968.5 million across 35 deals, reflecting a low average lot size of £27.7 million. Although volumes have decreased compared to this time last year, they remain 55% higher than the nadir of 2024, which saw the lowest annual turnover recorded in the City market since 1996. However, when benchmarking against the five-year average, 2026 figures currently show a 54% decrease by volume, but a 2% increase by number of deals, demonstrating that, although there appears to be healthy demand for smaller assets, liquidity is far more challenging among larger lot sizes, as evidenced by only three £100 million-plus deals having traded so far this year.
In the largest deal of the month, Savills sold the long leasehold interest (114 years at 7.5% gearing) in Vintners Place, 68 Upper Thames Street, EC4, for a sum in excess of £100 million. Located on the north bank of the River Thames, approximately five minutes to the south of Cannon Street and Mansion House station, Vintners Place is a landmark riverside property comprising 274,175 sq ft of office accommodation with exceptional tenant amenities, including a private gym and a 20-metre swimming pool, across two buildings: Vintners Place and Thames House. The property is currently multi-let to 11 tenants, including Sumitomo Corporation and Rothschild & Co, generating a contracted rent of £9,244,346 per annum, a WAULT of 6.9 years and a WAULTC of 5.3 years. Following significant investment from the owner, the property offers several deliverable asset management opportunities, including refurbishment of vacant office space, a consented roof terrace, new end-of-trip facilities and a refreshed arrival experience. Acting on behalf of JP Morgan and Greycoat, Savills sold the long leasehold interest, marking the third £100 million-plus transaction so far this year.
In another significant deal, CLI Dartriver acquired the freehold interest in 10 Bow Lane & 19–28 Watling Street, EC4, for £27 million. The property comprises three adjoining buildings, amounting to 30,293 sq ft of office and retail accommodation, located in a strong City core location between Cannon Street and St Paul’s station. The property is multi-let to eight office and three retail tenants at a passing rent of £1.69 million per annum, reflecting £55.98 per sq ft overall and providing a WAULT of 2.5 years to expiries and 2.1 years to breaks. European investor, CLI Dartriver, acquired the freehold interest from a European vendor at a net initial yield reflecting 6.17% initial yield and £891 per sq ft. The transaction marks CLI Dartriver’s first City acquisition since purchasing 1 Paternoster Square in May 2024, and its fifth acquisition since January 2023.
In the next largest deal of May, Savills advised on the acquisition of the long leasehold interest (97 years at 2.85% gearing) in Garden House, 11–13 & 19 Throgmorton Avenue, EC2. Located in a City Core location between Bank and Liverpool Street station, the property comprises 43,694 sq ft of office and ancillary accommodation arranged over basement, lower ground, ground and six upper floors and was sold with full vacant possession, thereby offering an opportunity to reposition the asset and capture the strong rental growth being seen in this location. The long leasehold interest was acquired by Irish investor, Lugus Capital, for £20 million, reflecting a capital value of £458 per sq ft.
As at the end of May, Savills is tracking £1.21 billion of under-offer stock across 25 deals.
Ed Robinson, City Office Analyst, Commercial Research
With a healthy flow of deals during May, including the year’s third £100 million-plus transaction, the fallow April (which saw no deals) appears to have been an anomaly. Although larger lot size deals will remain challenging during periods of sustained macroeconomic and geopolitical uncertainty, liquidity among smaller deals looks set to continue, and as at the end of May, Savills is tracking £1.21 billion of under-offer stock across 25 deals.
The West End prime yield is 3.75%, and the City prime yield is 5.25%.