Investment in the third quarter of the year was £722.36m, a 131% increase on the same period last year according to new research by Lambert Smith Hampton.
On target for record year
In addition, the latest edition of Lambert Smith Hampton’s UK Investment Transactions report reveals that the 2014 year to date investment has already outstripped year on year totals since 2011 and, by year end, is predicted to be the highest level of investment since 2007.
Strength in regional markets
North West activity is having a significant impact on total investment for the UK regions which totalled £6.0bn in the past quarter, the highest level since 2006. It is also the first time that investment in the regional markets has outstripped inflows into London since the start of 2011.
This quarter, there were some major transactions in the region across all sectors. These include the £75m purchase of 1 Piccadilly Gardens in Manchester city centre by Legal and General, the £72m sale of Robin Retail Park, Wigan, to TIAA Henderson Real Estate and the £28.87m DHL warehouse at XL Business Park in Skelmersdale by Tritax Big Box REIT plc.
Abid Jaffry, Director and Regional Head of Capital Markets at LSH commented: “Competition among investors continues in the region for both prime assets and those that offer add value opportunities. The North West is set to enjoy a record year in terms of returns and investment volumes.
“Investment in the region has escalated significantly with improved confidence on values and the strengthening occupier markets. In addition, the returns being offered in some of the secondary markets remain attractive to investors wishing to take advantage of the higher yields and positive occupier sentiment.”