■ We have recorded £2.4bn of UK Institutional sales in the year to the end of October, with Standard Life, Aberdeen Asset Management, DTZ Investors, TH Real Estate, Blackrock and Aviva each having sold over £100m of assets. As a result, UK institutional sales volumes to the end of Q3 2016 have already surpassed the previous year total record set in 2013 (see Graph 1). This vendor class made up 55% of Q3 turnover alone. We cannot identify any specific rationale for this trend. Whilst some sales have been from retail funds; others have been from wind down, refinancing or even opportunistic in response to overseas demand.

^{Source: Savills Research}

■ In an off market transaction, Citwax Investments Ltd, the parent company through which Israeli billionaire Teddy Sagi holds 71% of Market Tech Holdings has acquired the Holborn Links Estate for approximately £300m. The Estate comprises over 30 properties totalling in the order of 320,000 sq ft of commercial and residential accommodation. The vendor, advised by Savills and Triangle Group, acquired the estate for approximately £212m in early 2014.

■ In another off market transaction, Derwent London has sold the freehold interest in Tower House in Covent Garden to Capco for £67.5m, reflecting a 4.3% net initial yield and a capital value of £1,274 per sq ft. The multi-let property comprises retail, office and residential accommodation with an annual rental income of approximately £3.1m. The property was originally marketed in September 2015 for £71.7m.

■ IPD yields remain broadly in line with last month with the average equivalent yield moving out just 1 basis point to 4.88% and the average net initial yield remaining at 3.24% for the second month in a row (see Graph 2). Savills prime yield remains at 3.5%, its sixth month at this level.

■ With the pound remaining weak compared to both the Euro and the US Dollar, sitting 15% down on yearly highs (see Graph 2) we expect further overseas capital to be deployed by the end of year.

^{Source: Savills Research, IPD, XE}