Transactional activity slows in spite of more sales
April saw subdued activity, recording 2025’s lowest monthly turnover by volume (£184m) across four transactions. The month’s activity brings the year-to-date turnover to £1.9bn across 29 transactions, reflecting a 20% increase on the five-year average by volume but a 16% decrease by number of transactions.
The largest transaction in April was Aware Super and Delancey’s acquisition of 20 Manchester Square, W1, from Invesco Real Estate for £118.1m, reflecting 5.20% on a topped-up basis and £1,497 per sq ft. The building will be home to Lazard’s London headquarters after the firm signed a 15-year lease across the entire building. The transaction marks the first investment for Aware and Delancey since announcing a partnership to invest £1bn into UK property. They have other well-reported transactions in hand.
Other transactions included Lothian Pension Fund’s disposal of Screen House, W1, to DWI for £29m, reflecting £1,142 per sq ft. The property provides short-term income to vacant possession in May 2026, with scope for redevelopment and the potential to raise the height of the building by one to two stories and add exterior terracing. Given the asset’s profile and appealing value, we understand the disposal was subject to a highly competitive process. Tristan Capital has disposed of its freehold interest in 13 Southampton Place, WC1 (£17.5m, 5.50%, £1,045 per sq ft), part of the Holborn Links Estate, to a private investor. The building provides resilient income with a WAULT of 6.1 years to breaks and 7.3 years to expiries, with the retail element benefiting from return frontage while the office element is all-electric and provides future reversionary potential.
The sale of 20 Manchester Square marked the first on-market sale of an asset over £100m this year, with the sale process beginning in July 2024. The delay here related to the ongoing development, AfL, tenant’s work and the LuxCo sale, but we are still clearly seeing challenges with liquidity of scale property.
In contrast, we are still seeing continued interest in smaller deal sizes, with 21 transactions between £0–40m, and this appetite is evidenced by the competitive bidding process that took place for Screen House.
Savills tracked £335.6m of assets marketed in April (including both open and selective processes) across six buildings, including Hermes’s 100 Regent Street, W1 (Q.£85m, 7.20%, £1,591 per sq ft), Westbrook’s relaunch of 60 Charlotte Street, W1 (Q.£106m, 5.05%, £1,538 per sq ft) and Capital-38’s 190 High Holborn, WC1 (£45m, £484 per sq ft), advised by Savills.
In April, four sales have proceeded to bids and been placed under offer, with the most significant being Aberdeen Investments’ disposal of 24–28 Bloomsbury Way, WC1, advised by Savills. The headquarters office building is single-let to WPP until October 2030, with the estimated rental value for the property c.60% above the current passing rent of just under £45 per sq ft. The property, which comprises purpose-built office space, is suitable for both single and multiple occupancy. Wing Tai’s 10 Brook Street, W1, was also placed under offer, we believe, to Ares at an undisclosed level, with the purchaser looking to continue their recent Central London buying campaign.
The market feels poised for an active Q2 with £742m of sales under offer across 22 assets, and we expect to see the completion of a handful of scale deals in the coming weeks.
Savills prime West End yield remains at 3.75%, and the SONIA five-year swap rate stands at 3.85%, following the Bank of England’s recent interest rate cut to 4.25%.