February sees first £100 million transaction of 2026
February saw £199.8 million of turnover across six deals, including the first £100 million+ transaction of the year. Following a characteristically quiet January, which saw only three deals exchanged, February’s activity included a steadier flow of smaller deals in the sub-£20 million category, as well as the largest deal of the year to date.
As seen last year, the return of the £100 million+ transactions was the major driver for 2025’s notably increased turnover volumes and the improved sentiment which has followed. With the last quarter showing the highest quarterly turnover for three and a half years, the positive momentum will depend on the continuation of larger headline transactions and lowering cost of debt.
Although the Bank of England has cut the base rate by 150 bps since August 2024, February’s Monetary Policy Committee saw its members vote to maintain the rate at 3.75%. Although further cuts are anticipated this year, February also witnessed the outbreak of the US-Iran war, an event which will create geopolitical uncertainty and potential economic consequences given Iran’s influence on global energy supplies.
At the end of February, turnover volume stood at £318.3 million across nine deals, reflecting an average lot size of £35.4 million, and Savills is tracking a further £1.58 billion of under-offer stock across 35 deals.
In the largest deal of the month, Meadow Partners purchased 1 Wood Street, EC2, acquiring the long leasehold interest (139 years at 10.85% gearing) from German fund KanAm Grund, for £132 million. Located a few minutes’ walk to the east of St Paul’s station, 1 Wood Street comprises 184,184 sq ft of office and retail accommodation, with the offices single let to Eversheds Sutherland until 2033. The property generates a net passing rent of £7.92 million per annum, reflecting a highly reversionary £43.04 per sq ft overall, and benefits from a WAULT of 7.2 years to expiries. The long leasehold interest was acquired by American private equity firm, Meadow Partners, for £132 million, reflecting a 5.90% net initial yield and low capital value of £717 per sq ft.
In another notable deal, Savills acquired Fibi House, 24 Creechurch Lane, EC3, in an off -market transaction on behalf of a confidential client. Located opposite One Creechurch Lane, approximately five minutes’ walk from Liverpool Street station, the property comprises an 18,500 sq ft freehold building which was sold with full vacant possession.
In another deal, Savills acted on the sell-side for Ashmore Properties, successfully disposing of the virtual freehold interests (970 years at a nominal £1,500 per annum) in two commercial units at The Whitehouse, 9 Belvedere Road, SE1. Located on the Southbank, two minutes’ walk to the north of Waterloo station, the properties consist of two self-contained office units within a larger residential development and comprise 15,081 sq ft arranged over ground and lower ground floors.
The units are single let to Gordon Ingram Associates on a 10-year lease with no breaks and 7.5 years term remaining. The current net rent is £816,818 per annum, reflecting £54.26 per sq ft with a fixed uplift to £855,785 in May 2028.
The property was acquired by French SCPI, Alderan, for £9.78 million, reflecting 7.82% based off the current rent and 8.19% topped up, and a capital value of £648 per sq ft. During the same month, Alderan also acquired Goodman’s Fields, Mansell Street, E1, emphasising the trend of French SCPIs targeting high-yielding assets in Central London.
With £1.58 billion currently under offer and £4.02 billion of available stock across 68 transactions, much will depend on whether larger transactions continue to trade and at what velocity.
Ed Robinson, City Office Analyst, Commercial Research
With £1.58 billion currently under offer and £4.02 billion of available stock across 68 transactions, much will depend on whether larger transactions continue to trade and at what velocity. During 2025, the time period between going under offer and reaching exchange was more than three months in 52% of transactions, highlighting a frustrating trend of deals taking longer than usual to transact.
With six £100 million+ transactions currently under offer, the completion of the larger lot size transactions will be the key driver of how Q1 statistics appear next month.
Meanwhile, with only £159.2 million of new stock being launched in February across six new deals, the market still awaits a greater selection of sensibly priced available product to stimulate further activity.
The West End prime yield is 3.75%, and the City prime yield is 5.25%.