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News - 01/05/2012

Investment levels down 56% in the North West

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The total value of commercial property investment transactions across the North West fell in Q1 2012 to £243m from £557m in the previous quarter, according to our latest UK Investment Transaction (UKIT) quarterly bulletin.

Investment activity in Q1 down on 2011 levels

Across the region, this represented a decrease of 56% from Q4 2011, and well below Q1 2011 levels of £1,797.4m.

Retail deals dominated

The most significant deals to take place during Q1 included InfraRed Capital Partners's acquisition of St Johns Shopping Centre in Liverpool for £76.5m, LaSalle Investment Management’s acquisition of The Grange and Pyramids Shopping Centres in Birkenhead for £70m and Invesco Real Estate's acquisition of One New York Street in Manchester for £41.7m.

Retail sector accounted for 65% of total investment in the North West in Q1

Across the North West, the retail sector, which accounted for 58% of total investment in Q4 2011, increased to 65% in Q1 2012 with £158m worth of transactions. The office sector, which accounted for 24% of the total market in Q4 2011, remained stable at 25%.The industrial sector accounted for 9% of the market at £23m, falling 75% compared to Q4 2011.

More stock would stimulate investment market

Abid Jaffry, Northern Head of Capital Markets, commented: “The region has seen fluctuations compared to previous quarters. The disparities largely stem from the large lot sizes being traded, which impact on the overall statistical analysis to a greater or lesser extent. 

“There is still a hunger to acquire and the most recent buyers have broadly fallen into office or shopping centre purchasers. However, we believe the addition of more stock in the market would further stimulate investment in all sectors, which is currently lacking. ”


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