$10 BIllion in the City & West End

City investment advisors Gesham Down Capital Partners (www.greshamdown.com) calculate that there is more than £6.5 billion of commercial property for sale across Central London: around £5 billion in the City and £1.56 billion in the West End.

Gresham Down predict markets polarising between equity and debt investors, with overseas investors - predominantly equity investors, who currently represent almost half of buyers in London, dominating the market.  They estimate banks are trending towards selling or encouraging their borrower clients to sell and this will accelerate "with further stock being added from owners looking to take profit on purchases made within the past 2 years and from maturing loans within CMBS portfolios".  The number of active lending banks has fallen from 25 to no more than 10-15.

Gresham estimates that there are currently £1.43 billion of investments under offer in the City and £1.08 billion in the West End. Turnover for the year stands at £4.17 billion for the City and £3.33 billion for the West End, an increase of approximately one third compared to 2010.

Equity buyers are recommended to focus on sales from buyers who have to sell, whilst vendors are being told to focus on equity, rather than debt-based buyers.

Storm clouds over Segro

Segro, the industrial landlord with property in the UK and Europe, have reported income down 6.1% at £135.5 million ( 2010: £144.3 million), with pre-tax profit down 56.6% to £64.6 million (2010: £148.9 million).

Having taken over the ailing Brixton two years ago, Segro has been offloading the lower quality properties from the portfolio.  The UK accounts for about 65% of the remaining portfolio value, of which 92% is in London and the South, with 44% of the UK portfolio value in London, predominantly around Park Royal and Heathrow.  A recent disposal of 6 ex Brixton Estates multi-let freehold industrial estates at various locations across London has netted Segro £38.2 million.  The purchaser is the Industrial Property Investment Fund (IPIF), managed by Legal & General Property and the deal includes Brent Crescent, Park Royal and Abbeydale Road, Park Royal as well as properties in Poplar and Haringey

Ducati cross the line at Silverstone

Silverstone has been undergoing major redevelopment in recent years and this has continued with the announcement of Italian motorbike specialist Ducati opening a brand new headquarters building at Silverstone, which is to act as its British operations centre.  The purpose built facility includes some 8,000 ft² of office accommodation as well as warehousing and a workshop.