For many years those close to the UK commercial property market have seen a slow but steady increase in transactions involving private equity.  Historically, this has been dominated by sponsor investments in industrial buildings, but many are now switching to another asset class, offices.

A recent report by Colliers suggests that in the London office market 11% of all purchases and 25% of all under offer offices (over £10m) are now under offer to private equity companies.

The changing landscape in offices (in London in particular) is a factor here as buyers look to re-let, re-model or re-purpose existing buildings post pandemic.

As a business we are increasingly seeing the positive role private equity can play on a soft market and the London office market is a natural target.

This along with the consolidation in the UK funds/REITs world is a real positive for the UK.  Fingers crossed 2024/2025 will see the investment market bounce back.