I read with interest the piece that talked about a slowdown in investment activity in the run-up to the referendum on the UK’s membership of the EU on 23 June.
The numbers do not lie - and undoubtedly a 27% decrease in the first quarter is significant - however, there is evidence to suggest the threat of Brexit is being overplayed.
This week, Derwent London stated that the EU referendum is having no discernible impact, and at Farebrother we would say the same.
In the very centre of London, Midtown investment exceeded £1bn in the first three months of 2016 - a stellar quarter and almost double what we saw transacted in the final three months of the last year.
Investor confidence is rooted in the occupational market, and the dynamics in Midtown, where activity is now driven by TMT occupiers active in the 5,000-10,000 sq ft range, insulate it well from the effects of Brexit.
Of course, Midtown is not only the location with these fundamentals - which begs the question, why aren’t more domestic buyers pressing ahead with deals?
Alastair Hilton, partner, Farebrother
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