The Rise of Private Equity in UK Real Estate

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.

According to data from real estate agency Colliers for the year to date, private equity companies account for 11 per cent of purchases and around a quarter of under-offer deals over £10mn in the London office market.

https://www.investorschronicle.co.uk/news/2024/03/28/reits-are-losing-the-battle-for-london-s-bargains/