The industrial market has continued where it left off in 2013; with a significant weight of money chasing investment product that remains relatively scarce. We have seen yield compression across the board with supply/demand dynamics in the West Midlands’ occupational market in particular giving investors confidence in the likely performance of this sector moving forward.
As well as the transactions listed, we are aware of several deals within the logistics and multi-let sub-sectors that are currently under offer well in excess of quoting term, due to the strength of demand from investors.
Within the distribution market we are seeing considerable interest from a number of overseas buyers (particularly South African) who are providing stiff competition to some of the UK’s more traditional investors. Deals of note include:
• Acton Gate, Stafford (L&G £33m 6.2%)
• Tamworth 594, Tamworth (Blackstone RE £34.39m 7.9%)
• The Steelpark, Wolverhampton (Schroder £34.1m 9.0%)
• Grovelands IE, Coventry (Pramerica REI £11.15m 8.12%)
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