West End Investment Market
To briefly recap last year’s market volumes, total investment for London West End reached £5.15Bn in 2025 across 100 transactions. The market generally recovered to broadly the long term average volume and up one-third on 2024’s volume and a marked improvement from the 20+ year low of £3Bn recorded in 2023. The theme for the second part of the year was an increase in larger office lot sizes trading - with the average deal size £51M (up from £35M in 2024).
In Q1 2026…………
Allsop tracked £1.095Bn of West End transactions in Q1, either exchanged or exchanged and completed in 24 deals with an average lot size of £46M. Allsop had been involved in three of these - one disposal in Soho Square, W1, and the acquisition of 85 Harley Street, W1 for The Howard de Walden Estate, plus an £11M retail sale in South Kensington, SW7 prior to our March commercial auction.
As witnessed towards the end of last year the appetite for larger lot sizes has returned. 2025 saw 13 deals over £100M, more than 2023 & 2024 combined.
In Q1 2026, there were four deals exceeding £100M: Derwent’s sale of 90 Whitfield Street, W1 purchased by Lone Star Real Estate for £110.5M / 6.75% NIY (assuming top-up) / £1,029 per sq ft, The Copyright Building, 30 Berners Street, W1, a Long Leasehold asset acquired by Ares for c.£145M / 4.90% NIY / £1,368 per sq ft, and in March, Feldberg’s acquisition on behalf of Fastighets AB Balder of Wells & More, 45 Mortimer Street, W1 - c.£172M / 5.00% NIY / £1,483 per sq ft and Sinar Mas Land’s purchase of Horseferry House, Horseferry Road, SW1P for £131.8M / 5.98% NIY / £799 per sq ft.
Other notable transactions during the quarter include Cola’s disposal of Washington House, 40-41 Conduit Street, W1, acquired by Wendover Partners for £70M / £2,319 per sq ft. 34 Berkeley Square, W1, a VFH vacant trophy asset purchased by an owner occupier for £21M achieving a record capital value of £5,000 per sq ft and Derwent continued their disposal exercise with the sale of 80-85 Tottenham Court Road, W1 for £32.6M / 5.62% NIY / £753 per sq ft which was acquired by Purestone Capital & BPS London.
Whilst March had seen a limited number of transactions exchange, they account for 47% of total quarter volume - the most significant being Horseferry House, SW1 (£131.8M) and Wells & More, W1 in mid-March, (£172M) - with buyers in this instance appearing largely undeterred by the geopolitical uncertainty. Other notable transactions in March include Turkish Airlines’ acquisition of The Brompton Building, 100 Brompton Road, SW3 for c.£60M / £800 per sq ft, the owner of Uniqlo has continued their acquisition drive with the leasehold purchase of 103-113 Regent St, W1 which they occupy, for £52M / 7.20% NIY / £912 per sq ft and L&G’s purchase of 6-17 Tottenham Court Road, W1 for£51.5M / 6.63% NIY / £811 per sq ft.
Who is Buying?
Two of the largest transactions of the quarter were acquired by US-based capital, with Ares’ acquisition of The Copyright Building, W1 and Lone Star’s acquisition of 90 Whitfield Street, W1 accounting for c.23% of the quarter by volume.
UK-based investor activity has continued the upward trajectory witnessed in the final quarters of 2025, accounting for c.21% of transaction volumes. Notable transactions include Wendover Partners’ acquisition of Washington House, 40-41 Conduit Street, W1, Purestone Capital & BPS London’s acquisition of 80-85 Tottenham Court Road, W1 and Arora Group & Deva Capital’s acquisition of the Metro Building, Hammersmith, W6.
Who is Selling?
UK capital has once again been active on both sides of transactions this quarter accounting for c.68% of the total volume and UK Reits specifically accounted for half of the disposals with examples such as GPE’s disposal of Wells & More, 45 Mortimer Street, W1, and their joint venture disposal of 103-113 Regent St, W1, Landsec’s disposal of 6-17 Tottenham Court Road, W1 and Derwent London’s continuing disposal exercise with the sale of 90 Whitfield Street, W1, 80-85 Tottenham Court Road, W1 and Horseferry House, Horseferry Road, SW1P. In all, Landsec, GPE and Derwent sold over £500m of assets between them in 6 buildings.
Direction of Travel
A key theme throughout the quarter was a continued lack of new stock, with buildings that have come to market largely launched on a targeted basis. In almost all cases, launches commenced in January and February, with notable examples including Lucent and Piccadilly Lights, W1 - Landsec's freehold island site, marketed at c.£450M — and 1 St James's Square, SW1, where Lifestyle International Holdings brought forward a 103,655 sq ft prime freehold redevelopment opportunity, quoting circa £300,000,000 / £2,894 per sq ft. There remains a significant volume of available and previously withdrawn stock which remains buyable, with several formerly marketed assets being relaunched to the market.
Whilst the March volumes actually turned out relatively positively despite the geopolitical uncertainty, what the stats don’t show is several larger transactions turning abortive, and the even greater number of transactions which we sense are being “soft pedalled”.
Concluding on a positive, Real Estate, and the West End in particular, has historically benefited from its “safe haven” status amidst global uncertainty - with some investors sensing opportunity to enter the market in what could be a short-term period of uncertainty.
