^{Source: Savills Research}

■ On behalf of TH Real Estate, Savills acquired 60 Great Portland Street for £102.15m, reflecting a 3.89% net initial yield and a capital value of £1,300 per sq ft. The freehold interest comprises 65,415 sq ft of office space, let to The Engine Group until January 2028, and 14,137 sq ft of adjoining multi-let retail accommodation.

■ In the largest deal of the month, and the second largest pure office transaction of the year, Grosvenor Fund Management has sold Almack House, it’s freehold office investment in St James’s for £232m, reflecting a 3.49% net initial yield and a capital value of £2,381 per sq ft. The interest was acquired by Ponte Gadea, the investment company of Amancio Ortega, the world's fourth richest individual. This was Ponte Gadea’s second known purchase in the West End this year having previously acquired Oriana, a substantial retail holding at the eastern end of Oxford Street for £435m in April. Both transactions accounted for 8% of total West End turnover in 2015.

■ Meridian Properties has sold the freehold interest in 7 Old Park Lane. The property comprises an office building totalling 42,816 sq ft, multi let to 24 tenants with vacant possession obtainable December 2018. The property was marketed with potential for alternative uses and after receiving strong interest was sold to Gruppo Romeo, an Italian based real estate investor for £82.7m, reflecting a 2.16% net initial yield and a capital value of £1,932 per sq ft.

■ Longer let office investment opportunities were in short supply over 2015 and consequently when marketed invited significant attention. This was demonstrated by the sale of 46 Kensington Court for £22.61m, reflecting a 3.3% net initial yield and a capital value of £1,398 per sq ft to a UK Charity. The property comprises 16,170 sq ft of office space and was sold under the agreement of a new 15-year leaseback to the vendor, Warner Chappell Music, at an annual rent of £790,000 reflecting a rent of £48.86 per sq ft overall. The sale process attracted approximately 10 bids, with the final price almost 30% over the original guide.

■ UK purchasers remained the largest investor group over 2015, making up almost 36% of total volume. Investment by European buyers saw the largest increase in market share, increasing 17%, whilst investment by US buyers saw the largest decrease, dropping by over 11% in 2014 (see Graph 2).

^{Source: Savills Research}

■ Savills Prime yield remains at 3.00%, with the IPD equivalent yield hardening to 4.65%, down from 4.75% 12 months ago (see Graph 3).

^{Source: Savills Research, IPD}