The West End of London has seen a record level of £1.93 billion in commercial property investment in Q1 2017, according to commercial property and real estate consultants Cushman & Wakefield.
A large proportion of those investment funds have emanated from Hong Kong. This figure equates to a 22 per cent increase from the Q1 five-year average, beating the previous record of £1.8 billion invested back in 2013.
Much of this can be attributed to large deals such as the sales of the Facebook campus on Rathbone Square and Candy Crush’s Ampersand Building in Soho.
The Energy Performance Certificate (EPC) for properties was introduced back in August 2007 as part of the new Home Information Pack (HIP).
The grading system within the EPC, within which a commercial property falls, can directly influence both the rental and resale value of the property. Although the HIP itself was abandoned by the Government, the EPC remains necessary for both residential and commercial properties. All commercial properties of more than 50 square metres of floor space must comply.
A good EPC rating, indicating a property with high energy efficiency, therefore lower running costs, is likely to be more attractive to investors and potential purchasers and is regarded as an important investment criteria.
Eri Mitsostergiou, the director of European research at Savills, was reported to have said that European investment in commercial property in 2016 reached its third highest level ever at €207 billion. Although down 15 per cent year-on-year for some markets, other European countries saw an increased appetite, with Italian investors increasing their exposure by 25.5 per cent, the Netherlands by 24.4 per cent and Sweden by 32.2 per cent.
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