^{Source: Savills Research (*Q4 2015 data to end of November)}

■ Derwent London has sold the Davidson Building, 5 Southampton Street for £66.9m reflecting a 3.84% net initial yield and a capital value of £1,515 per sq ft. The freehold interest totals 44,161 sq ft of office and retail accommodation multi-let to five tenants with a weighted unexpired lease term of over 7.5 years. The property attracted strong interest from a range of investor types, with it reported that a number of UK institutions put forward proposals prior to its exchange to Cornerstone Real Estate. Interestingly the adjoining sale of Tower House remains unsold.

■ In an off market transaction Standard Life acquired 6 Duke Street for £57.35m, reflecting a 3.15% net initial yield and a capital value of £1,634 per sq ft. The freehold interest totals 35,098 sq ft of office and retail accommodation multi-let to ten tenants. The vendor, a private Polish investor had acquired the property in 2012 for £39m. Even after a 47% improvement on purchase, a St James’s freehold at this capital value per sq ft looks good value.

■ On behalf of Threadneedle, Savills has sold 20 St James’s Square, a vacant freehold office property totalling 12,648 sq ft. The property was sold to a private Middle Eastern investor for their own occupation for £32.5m, reflecting a capital value of £2,570 per sq ft.

■ The appetite for prime retail remains strong with a private investor acquiring the virtual freehold interest in 192-194 Oxford Street for £44.75m, reflecting a net initial yield of 2.26% and a capital value of £4,503 per sq ft. The property comprises 10,105 sq ft of retail and office accommodation and is majority let to Russell & Bromley at a rent of £985,000 per annum reflecting £543 ZA until March 2018. Aberdeen Asset Management acquired the property in May 2011 from Great Portland Estates for £19.2m.

■ Further to above we have witnessed record transactional activity on Oxford Street this year with turnover of almost £1.2bn, 74% in excess of the previous best in 2013 (see Graph 2). Transaction volumes on the street alone have contributed 16% of total turnover this year to date, 60% of which occurred on the eastern section of the street.

^{Source: Savills Research (*Q4 2015 data to end of November)}

■ Savills has been involved in over 20% of West End transactions this year by volume, across 35 transactions. We expect a busy run up to year end and remain positive about purchaser sentiment in Q1 2016.

■ Whilst the IPD initial yield rose for the second month in a row to 3.05%, the IPD average equivalent yield stands at 4.65%, down from 4.87% this time last year. The Savills prime yield remains at 3%, (see Graph 3).

^{Source: Savills Research, IPD}