German investment funds have bought £500m of commercial property in the City it has been reported.
Backed by a strong Euro and falling prices they have snapped up premium locations within the square mile.
Milton Gate in More Lane is to be sold to Signa for £150 million, Moor House at London Wall to Deka for £230 million and 88 Wood Street to SEB for £180 million.
It is hoped the market’s falling prices have reached their floor Lehman Brothers’ property analyst Mike Prew told Reuters recently.
“Our ‘point of maximum pessimism’ may be approaching, but like any bubble, we will not know until it is all over, but we believe mid-July came pretty close.”
Foreign investment has also poured in from the Middle East. Cash-rich funds have added much-needed movement to the market and reaffirmed the world’s ongoing attraction to the City.