■ Post-referendum vote we have recorded volumes of £976m over 19 transactions, the majority of which, over 70% by volume, being made up of properties with an average weighted unexpired term of over 10 years, rising to 90% over five years (see Graph 1). Another notable observation is the percentage of overseas buyers, making up 85% of purchases post-referendum vote.

^{Source: Savills Research}

■ An example of longer income transactions being well received by buyers was the sale of Watergate House, 13-15 York Buildings, which Savills sold on behalf of Standard Life Investments. The asset totals 11,187 sq ft and is single let to the Business Growth Fund Plc until November 2025, generating an annual passing rent equating to £71.54 per sq ft. After significant interest and second round bidding the property was acquired by a Private Middle Eastern Investor for £19.9m, reflecting a 3.77% net initial yield and a capital value of £1,779 per sq ft. This was over 10% in excess of the quoting price.

■ Further retail led income deals traded this month include the sale of Wellington House and Wilton Plaza by Savills on behalf of Land Securities as well as the sales of 81 Dean Street and the Walmer Castle Pub in Notting Hill, the latter both having unexpired terms of over 20 years.

■ The depth and diversity of buyers in the West End continues to evolve with the Indonesian Government acquiring Trevelyan House, 30 Great Peter Street for £40.15m, reflecting a capital value of £678 per sq ft in the largest deal of the month, the freehold office, totalling 24,000 sq ft, was offered with vacant possession. The buyer acquired the property for their own occupation owing to them shortly being moved out of their current home, 38 Grosvenor Square, by the Grosvenor Estate.

■ The IPD average equivalent and initial yields have both moved out to 4.81% and 3.19%, respectively. The Savills prime yield remains at 3.5%, its third month at this level (see Graph 2).

^{Source: Savills Research, IPD}