Source: Savills Research
Q1 investment turnover highest in the City since 2007
Market comment and notable deals
■ March turnover was £1.9bn across 13 deals, equating to an average lot size of £146.14m. This brings total turnover for the year so far to £2.6bn across 33 deals, the largest Q1 since 2007.
■ In the City market, we are currently monitoring 60 investment opportunities totalling circa £3.4bn. Of which, 26 are currently under-offer totalling circa £1.3bn, leaving an estimated £2bn worth of available opportunities.
![Graph 1](http://research.euro.savills.co.uk/_images/g1(65).png)
GRAPH 1City turnover by quarter
■ A notable deal from March saw KanAm acquire 1 Wood Street, EC2 for £179.5m, 4.23% NIY and £975/sq ft from Aerium/Hanwha Life. The building is let to to Eversheds LLP until 2026.
■ Also in March, Savills advised Beijing SHOKAI on the acquisition of the Leasehold interest of Fleet Place House, 2 Fleet Street, EC4. The property comprises 91,955 sq ft of office and retail accommodation and is fully let to 6 tenants with a weighted average unexpired lease term of approximately 6.39 years. The property sold for £96.50M, 4.80% NIY & £1,049/sq ft.
■ As of the end of March, Asian purchasers have accounted for the majority of turnover at 64%, followed by UK and European purchasers both accounting for 13%, and US and Middle Eastern purchasers both accounting for 5%.
![Graph 2](http://research.euro.savills.co.uk/_images/g2(59).png)
GRAPH 2City 2017 turnover by nationality
Source: Savills Research
■ There have been six transactions so far in 2017 by owner occupiers accounting for 6% of turnover.
■ Savills prime City yield remains at 4.00% against a background of investor demand outstripping current supply. The spread between the City and the West End is still just 75bps with the West End prime yield currently at 3.25%.
![Graph 3](http://research.euro.savills.co.uk/_images/g3(27).png)
GRAPH 3City & West End prime yield
Source: Savills Research
![Table 1](http://research.euro.savills.co.uk/_images/table1(89).png)
TABLE 1Key deals in March 2017
Source: Savills Research