Property Desk

The drop in value in prime real estate in the centre of London has prompted the capitals leading property groups to raise new funds in the City to finance a “bargain buying spree”, reports the Sunday Times business correspondent Jenny Davey.

The three property "titans" Great Portland Estates, Shaftsbury and Big Yellow are preparing to approach investment funds to raise anywhere upto £330 million to buy up key freehold properties in the West End, to fund bargain deals.

The Sunday Times has reported that Great Portland Estates is aiming to raise £120-£150 million through a new right issue.  Shaftsbury which already owns large areas of Carnaby Street and Covent Garden is looking at raising £150 million.  Big Yellow the storage company is looking at raising around £30 million to fund "construction of new sites in London".

Freehold values in the centre of London on commercial properties have seen a drop in value of upto 20 per cent, with the residential market dropping by 30 per cent.