^{Source: Savills Research}

■ With investor appetite as strong as ever, coupled with a predicted surge in new stock entering the market during the Autumn months we predict record West End turnover levels for the third consecutive year.

■ Savills was involved in 20% of West End transactions this month and in one of the largest deals in July, sold 101 Wigmore Street on behalf of Axa Investment Management. The property comprises 54,962 sq ft of retail and office accommodation over ground and nine upper floors. Selfridges acquired the property for a price of £97m, reflecting a net initial yield of 2.8% and a capital value of £1,765 per sq ft.

■ In addition, Savills sold 1-3 Charlotte Street on behalf of a private UK investor. The 4,033 sq ft office and retail investment attracted very strong interest with approximately 100 inspections. The property sold for £7.6m to a private European investor which reflected a new on market capital value record for Fitzrovia of £1,884 per sq ft.

■ Ho Bee Land has purchased 39 Victoria Street for £144m, reflecting a net initial yield of 4.08% and a capital value of £1,471 per sq ft. The freehold interest totals 97,876 sq ft of office and retail accommodation and is single let to the Government until September 2029 off an average rent of £61.30 per sq ft. The property is subject to five yearly rent reviews.

■ In an off market transaction, Kajima has sold the long leasehold retail and office interest in 103 Mount Street. The property was acquired by Meyer Bergman for £81m, reflecting a net initial yield of 3.11% and a capital value of £2,662 per sq ft.

■ Pembroke Real Estate has sold 20-21 St James’s Square to Threadneedle for £120m, reflecting a capital value of £1,695 per sq ft. The freehold office interest comprises two interconnecting buildings totalling 70,797 sq ft with vacant possession available in September this year.

■ West End yields continue to be squeezed with almost half of transactions this year reflecting a net initial yield of 3.5% or lower, rising to two thirds below 4%. The IPD average equivalent yield stands at 4.70%, down from 5.03% at this point last year, whilst the average initial yield continues to trend downwards and stands at 3.04% (Graph 2).

^{Source: Savills Research, IPD}

^{Source: Savills Research}