Across the region, this represented a decrease of 25% from Q4 2012 and a marginal drop from Q1 2012 levels of £243m.
One Angel Square sold for £142m
Activity was dominated by one single transaction, namely RREEF Real Estate’s acquisition of a 51% share in the Co-operative Group's new headquarters at One Angel Square for £142m. Other key deals included LaSalle Investment Management’s acquisition of Hermes Parcelnet’s Industrial unit in Warrington for £17.2m and InfraRed Capital Partners’ acquisition of Clayton Square, Liverpool for £14m.
Drop in activity for the retail sector
The office sector accounted for 68% of total investment activity in Q1 2013 with £143.3m worth of transactions, a considerable increase from the previous quarter of £36.15m. However, this was largely due to the sale of The Co-op’s HQ. The retail and leisure sector which accounted for 77% of the total market in Q4 2012 dropped to 20% in Q1 2013 at £42.2m. The industrial sector remained steady, accounting for 12% of the Q1 market at £25.9m.
Growing investor appetite
Abid Jaffry, Northern Head of Capital Markets at LSH commented: “While One Angel Square dominates the figures, it is indicative of a growing interest in regional offices with purchasers seeking value further North as it becomes increasingly difficult to acquire and justify Central London pricing. Paradoxically, a lack of new opportunities in the North West is also creating a growing pressure on pricing and we are seeing healthy signs of investor interest in the marketplace.”
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