Foreign money fuels London commercial property deals

Big-spending overseas investors sent the value of London commercial property deals soaring 50% to £11.6 billion last year, figures showed today.

The weak pound and the capital's status as a major tourist centre helped the value of deals more than double to £6 billion during the year, according to property consultant Gresham Down.

The biggest deals were Crown Estates' £448 million sale of a quarter of its Regent Street portfolio to Norway's state pension fund, and Land Securities' £250 million disposal of its Park House office and retail scheme opposite Selfridges on Oxford Street to Qatari investors Barwa.

City transactions were more muted after a slower second half to finish 13% up on 2009 at £5.6 billion. Recent business includes the sale of Goldman Sachs's European headquarters in Fleet Street to Chinese Estates, revealed by the Standard last month.

Gresham Down managing partner Stephen Down expects the market to hold up as overseas money floods into London property.