Hedge Your Bets

There has been some discussion of renewed property activity in the London hedge fund and private equity sector recently. Metropolis undertook a mini-analysis of the sector over the last two years using its database and found that activity has been even higher than that reported by other commentators.

Some 80 firms have been featured by Metropolis since early 2012. Last year nearly 140,000 sq ft was let to hedge funds and private equity firms (including the largest deal 30,000 sq ft to Winton Capital), followed by another 100,000 sq ft so far in 2013 including 25,000 sq ft to Bridgepoint Capital.

There are currently over 210,000 sq ft of unfulfilled office requirements in the market, spread amongst 25 firms, mainly searching in the London Mayfair and St James’s areas.

In addition, Metropolis is in contact with a further thirty firms with approaching lease expiries over the next two years that could yield another 190,000 sq ft of requirements.

These, often secretive, firms are well known for paying high rents and spending considerable sums on fit-out specification, however market intelligence on future plans is known for its scarcity. With further activity from US firms spreading into Europe the hedge fund and private equity sector looks well set for more growth.

(C) Metropolis Property Research Ltd 2013

REF: V35DJP2Q7ADM

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