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London's commercial property market is booming after attracting record investment in Q1

Investment into the capital’s office sector has boomed in the first quarter of 2016 after commercial property attracted multi-billion pound investment, including a number of £100m+ deals.

According to data released today by CBRE, total investment between January and March hit £4.9bn, representing the most chunky quarter for deals since 2014 and the highest first quarter ever.

CC Land’s £1.15bn purchase of the Cheesegrater proved to be the headline commercial deal in the period with 80% of the quarter’s business coming from overseas investors, up from 74% in Q4 2016.

Overseas buyers also accounted for nine out of the 13 deals worth over £100m in the quarter, as foreign investors hunted for bargains in the current low Sterling climate.

Stephen Pearson, who is Head of City Investment at CBRE, commented: “The momentum we experienced at the end of last year has shown no sign of abating in the early months of 2017 and London remains a central focus for international capital requirements.

“This is a great endorsement of London’s continued appeal and testament to its resilience and ability to adapt and diversify. Appetite from overseas investors for large lot sizes, particularly in the City, will be a key feature of the market for the remainder of the year.”

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