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News - 07/02/2013

North East investment volume remains static during 2012

Retail and leisure sector underpins an otherwise flat market

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Findings from our latest UK Investment Transactions (UKIT) report show that the total value of commercial property investment transactions across the North East remained static in 2012, from £234m in 2011 to £233m.

Retail sector is king

Investment activity across the North East was heavily underpinned by the retail and leisure sector in 2012, which accounted for two thirds of the market, at £153m.

The lion’s share of which comprised three single transactions, namely Osprey Equity Partners’ acquisition of Sainsburys at Riverside Road in Sunderland for £35m in Q2 2012, The Crown Estate’s acquisition of The Gate in Newcastle for £60m in Q3 2012, and Westmont Hospitality Group’s acquisition of the long leasehold in The Staybridge Suites in Newcastle for £12.5m in Q4 2012.

Abid Jaffry, LSH’s Northern Head of Capital Markets, commented: “The retail and leisure sector has proved the asset class of choice across the North East, continuing to attract investment in spite of the sluggish conditions witnessed by both the industrial and office sectors.”

Modest improvement for Industrial sector

Activity in the industrial and logistics sector saw a modest improvement, from £12.6m in 2011 to £17.1m in 2012, representing 7% of the market.

Significant fall in office transactions

Countering this, office investment fell significantly by 95%, from £47.5m in 2011 to just £2.5m in 2012, representing just 1% of the market.

To view our full UK Investment Transactions (UKIT) report, please click here.


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