West End sales hit £3bn in first half

West End property transactions in the year-to-date have already outperformed the corresponding period of 2011, hitting £3bn.

A total of £3bn was generated from 69 deals in the first half of 2012, compared to just under £5bn for the whole of 2011.

Allsop's research also reveals that of the transactions between January and 30 June, £1bn were purchased with a residential conversion angle in mind.

Piers Glover, partner for Allsop's West End investment team, said: "The stability of rents and expectations of rental growth due to supply constraints continue to attract investors to the West End. The majority of asset sales bring multiple bidders who initially fund the purchase with cash, showing good depth to the market."

Key deals during the period include Deka Immobilien's £110m purchase of 1 Southampton Row, WC1, and Sirosa, the investment vehicle of the German Conley family, paying £166m for WELPUT's Stratton House, W1, reflecting a 4.2% net initial yield.

Glover added: "Assets are continuing to be brought to the market to capitalise on the values that have remained strong. Some vendors then look to other markets or to the periphery of the West End to buy higher-yielding stock."