Investment in the UK commercial property sector totalled £11.9bn during the second quarter of 2014 - a 10% increase on the first quarter of the year and 45% higher than in the corresponding period last year.
Investment in the regions has mirrored this trend, with a 39% increase in regional UK offices investment in Q2 compared with Q1. This increase in spending has been predominately led by UK institutional investors as the lack of prime office stock and increasing occupier confidence is continuing to put downward pressure on prime office yields.
The limited availability of prime investment stock but also confidence in the resurgent regional office market is no better highlighted than IM Properties’ recent purchase of 55 Colmore Row for circa £33m; a refurbishment opportunity located at a premier Birmingham address.
Notable transactions include:
- Priory & Temple Court, Birmingham to Legal & General for £87.5m
- 5 St Philips Place, Birmingham to Cordea Savills for £38m
- 55 Colmore Row, Birmingham to IM Properties for £33m
To view our latest UK Investment Transactions (UKIT) report, please click here.