Latest commercial property news from Lambert Smith Hampton


North West investment market remains stable in Q2


Abid Jaffry

The total value of commercial property investment transactions across the North West fell in Q2 2012 to £142m from £243m in the previous quarter, according to our UK Investment Transaction (UKIT) quarterly bulletin.

Investment activity in Q2 similar to 2011 levels

Across the region, this represented a decrease of 42% from Q1 2012, but slightly above Q2 2011 levels of £119m.

Retail deals dominated Q2

The most significant deals to take place during Q2 included PRUPIM’s acquisition of Sainsbury’s at Marus Bridge Retail Park in Wigan for £39.2m, Standard Life Investments’ acquisition of Tesco’s superstore in Congleton for £21.2m and Commercial Estates Group’s acquisition of Stakehill Industrial and Distribution Park for £20m.

Retail sector accounted for 66% of total investment in the North West in Q2

Across the North West, the retail sector, which accounted for 65% of total investment in Q1 2012, increased marginally to 66% in Q2 2012 with £94m worth of transactions. The office sector, which accounted for 25% of the total market in Q1 2012, fell sharply to 9% in Q2 at £13m. The industrial sector accounted for 24% of the Q2 market at £34m, an increase of 48% compared to Q1 2012.

Continued lack of stock and transactions

Abid Jaffry, Northern Head of Capital Markets, commented: “The North West investment market remained relatively stable throughout the second quarter of 2012. However, there continues to be a lack of stock and there were no deals above £40m within the region. The majority of transactions have been sub £1m. 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, which is demonstrated by PRUPIM’s acquisition of a Sainsbury’s and Standard Life Investments’ acquisition of a Tesco superstore.”

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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