The total value of commercial property investment transactions across Yorkshire increased in Q2 2012 to £172m from £123m in the previous quarter, according to our UK Investment Transaction (UKIT) quarterly bulletin.

Investment activity up on 2011 levels

Across the Yorkshire region, this represented an increase of 40% from Q1 2012, and above Q2 2011 levels of £107.2m.

Retail deals dominated Q2

The most significant deals to take place during Q2 included Threadneedle Property’s acquisition of The Core Shopping Centre in Leeds for £37m, Credit Suisse’s acquisition of Princes Exchange, Leeds for £36.6m and Blackstone Real Estate’s acquisition of a B&Q at Redhouse Interchange in Doncaster for £35m.

Retail sector accounted for 31.4% of total investment in the North West in Q2

Across Yorkshire, the retail sector, which accounted for only 4.9% of total investment in Q1 2012, increased to 31.4% of total investment in Q2 2012 with £54m worth of transactions. The office sector, which accounted for 46% of the total market in Q1 2012, fell to 33% of total investment in Q2 at £56m.The industrial sector accounted for 28% of the market at £49m, an increase of 81.5% compared to Q1 2012.

Continued lack of stock and transactions

Abid Jaffry, Northern Head of Capital Markets, commented: “The Yorkshire investment market remained relatively stable throughout the second quarter of 2012. However, there continues to be a lack of stock and there have not been any purchases above £40m within the region this quarter. Three deals at circa £35m accounted for approximately 60% of the transactions within the last quarter.

Investors focused on prime stock

Abid concluded: “Investor demand remains focussed on prime stock and we are still experiencing a considerable yield divergence away from the prime end of the market.”