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North East investment market increased in Q2

01/08/2012

Abid Jaffry

The total value of commercial property investment transactions across the North East increased in Q2 2012 to £64m from £7m in the previous quarter, according to our latest UK Investment Transaction (UKIT) quarterly bulletin.

Investment activity up on 2011 levels

Across the North East region, this represented a significant increase from Q1 2012, and well above Q2 2011 levels of £32.5m.

Retail deals dominated Q2

The most significant deals to take place during Q2 included Osprey Equity Partners’ acquisition of a Sainsbury’s at Riverside Road in Sunderland for £35m and LaSalle / Mars Pension Fund’s acquisition of a retail park at Captain Cook Square in Middlesbrough for £19m.

Retail sector accounted for 89% of total investment in the North East in Q2

Across the North East, the retail sector, which accounted for 43% of total investment in Q1 2012, increased significantly to 89% in Q2 2012 with £57m worth of transactions. The office sector, which accounted for 14% of the total market in Q1 2012, fell sharply to 2% in Q2 at £1m. The industrial sector accounted for 9% of the market at £6m, a market increase of 100% compared to Q1 2012

Continued lack of stock and transactions

Abid Jaffry, Northern Head of Capital Markets, commented: “The North East investment market saw a large increase in the total amount that was transacted in Q2 2012. This was due to two large deals which accounted for approximately 85% of the total. There is still a great deal of caution within the market due to economic uncertainty and therefore stock levels are likely to remain ‘thin’.

Investors focused on prime stock

Abid continued: “Investor demand remains focussed on prime stock with there being considerable yield divergence away from the prime end of the market.”

For further information relating to this news article contact 

Contact us now

Abid Jaffry
Head of Northern Capital Markets

0161 242 7099

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