Sellers prep £200m of Oxford offices and labs to bring to market
Oxford’s office and lab market set a new record for investment volume last year as investors poured money into its science and innovation sectors – and more than £200m of assets are now being prepared for sale.
Savills tracked £805m of deals over the course of 2021, a surge of 478% compared to the five-year average. Overseas investors accounted for more than three-quarters of deals, led by Singapore’s GIC acquiring a 40% stake in Oxford Science Park for £395m.
The agency added that 2022 has so far seen £40m of deals recorded and some £200m of assets coming to market.
Oxford’s office and lab market set a new record for investment volume last year as investors poured money into its science and innovation sectors – and more than £200m of assets are now being prepared for sale.
Savills tracked £805m of deals over the course of 2021, a surge of 478% compared to the five-year average. Overseas investors accounted for more than three-quarters of deals, led by Singapore’s GIC acquiring a 40% stake in Oxford Science Park for £395m.
The agency added that 2022 has so far seen £40m of deals recorded and some £200m of assets coming to market.
Jonothan Holmes, director in the investment team at Savills, said: “Prime yields for Oxford are now closing in on 4%, which is on par with Cambridge, and a 75 basis point premium to the prime regional office yield of 4.75%. Given the strong occupier market fundamentals and future rental growth prospects, we expect investor interest to continue to increase over the coming year.”
Savills said there was as much as 2m sq ft of requirements from companies looking to locate to Oxford, making for a competitive prelet market as supply of space remains tight. This year office rents are likely to pass £50 per sq ft, the agency said.
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