■ Orchard Street Investment Management has purchased 70 New Oxford Street for £36.5 million, reflecting a net initial yield of 1.55% and a capital value of £1,414 per sq ft. The property was developed by a private Greek Investor and comprises an office and retail building totalling 25,820 sq ft. The low initial yield reflects the property being majority vacant with Orchard Street taking on the leasing risk as part of the acquisition.

■ Demand for prime retail investments is as strong as ever, demonstrated by two Oxford Street transactions this month: 155-157 Oxford Street was sold for £20.1 million reflecting a net initial yield of 2.16%, whilst 25-27 Oxford Street was sold off market to Emperor International Holdings for £35.5 million, reflecting a net initial yield of sub 2%.

■ Aberdeen Asset Management has sold 4-8 Maple Street for £21.6 million reflecting a capital value of £1,155 per sq ft. The property was sold with vacant possession to NFU and attracted seven bids from a mixture of funds, developers and owner occupiers.

■ As forecast in our last West End Investment Watch, and after continuing pressure, Savills have reduced their prime yield to 3.00% this month. The IPD average equivalent yield stands at 4.73%, down from 4.78% in March 2014, whilst the average initial yield continues to trend downwards and stands at 3.16%, as seen in Graph 1.

click on image below to enlarge

^{Source: Savills Research, IPD}

■ UK investors, specifically UK institutions continue to be some of the most aggressive buyers in the market however recent market commentary often overlooks the fact that UK investors are also material sellers capitalising on strong market conditions. This has led to UK outflows exceeding inflows within the West End by over £550 million this year, as seen in Graph 2.

click on images below to enlarge

^{Source: Savills Research}