RCA in the commercial property press:

London Leads Commercial Real Estate sales for Second Year in a Row

The Independent reports: Here was some festive cheer for NAMA and other Irish owners of London property yesterday following the publication of a report about the world's commercial property market.

It suggests that the English capital has drawn the most investment worldwide for the second consecutive year as prospects of rising rents attract cash from as far afield as Hong Kong, Qatar and Canada.

Sales of existing commercial property in London totaled $13.9bn (€10.6bn) in the first nine months, more than in any other city, according to global commercial property research firm Real Capital Analytics (RCA).

Some of the biggest deals of the year were announced in the final quarter.

"There's a massive surplus of investment capital looking for a home, and the one thing in common is a desire for yield," said RCA Managing Director Dan Fasulo.

"A core London office property at a 5pc or 6pc yield looks fantastic against the alternatives."

Cash-rich pension funds, sovereign wealth funds, insurers and wealthy individuals bought shops, offices and even luxury homes in central London as low interest rates and concern that the global economy will deteriorate made other investments riskier and less appealing.

The city also ranked first in 2009 with sales of $16.8bn, New York-based RCA said.

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Posted by: Nina Turner

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