■ Despite this relatively muted start to 2018, we do believe investment activity will pick up by the end of Q2, due to the level of transactions currently under offer standing at c.£3.9bn. Larger transactions including 20 Old Bailey, EC4 (£341m), under offer to Mirae Asset Management and Ropemaker Place, EC2 (Q. £707m), under offer to HoBee Land will have a positive impact on transactional volumes for the year.

■ On behalf of Credit Suisse Asset Management, Savills sold the freehold interest in 45 Folgate Street, E1 for £26.5m, reflecting a net initial yield of 4.34% and a capital value of £1,327 per sq ft. Located on the northern fringe of the City of London at its border with Shoreditch, the property was comprehensively refurbished in 2017 to provide 19,967 sq ft of Grade A office accommodation, and is multi-let to four office tenants, with a WAULT of 7.2 years to expiries and 6 years to breaks.

■ Czech developer PPF Real Estate acquired 1 Westferry Circus, E14 for £112m reflecting a net initial yield of 5.63% and a capital value of £501 per sq ft. The virtual freehold building was developed in 1992 and occupies a substantial 0.86 acre island site providing 223,670 sq ft of office, retail and ancillary accommodation. The property offered a number of asset management initiatives with a number of upcoming expiries in 2019.

■ Another notable transaction for the month saw the off-market acquisition of 24 King William Street, EC4 by Ella Valley Capital for c.£100m reflecting a capital value of £1,237 per sq ft. The freehold building was comprehensively renovated by Beltane/Angelo Gordon and completed in 2017. The property was multi-let to two office tenants and three retail tenants with 54,410 sq ft of the office accommodation vacant.

■ A lack of availability continues to subdue market activity with £1.80bn of available stock being openly marketed across 28 transactions, only 50% of which was formally launched to the market in 2018. The lack of availability has not slowed investor demand, shown clearly by the number of off-market transactions already this year accounting for 44% of total volume.

■ Asian investors continue to invest in the City and have accounted for 45% of total investment activity to date in 2018 with UK investors (25%) and Middle Eastern Investors (13%) accounting for the majority of the remaining volume. UK investors continue to lead the way in terms of number of transactions having acquired 15 properties so far this year, 48% of all deals.

■ Savills prime City yield remains at 4%. We are monitoring yields which might be coming under pressure in a global environment of rising interest rates and currency movements. To date there is no evidence to indicate that yields have softened.