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News - 16/05/2013

The Co-op's HQ sale dominates the North West's investment market

Findings from our latest UK Investment Transactions (UKIT) report show that the total value of commercial property investment transactions fell in Q1 2013 to £211.4m from £283m in the previous quarter.

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Across the region, this represented a decrease of 25% from Q4 2012 and a marginal drop from Q1 2012 levels of £243m.

One Angel Square sold for £142m

Activity was dominated by one single transaction, namely RREEF Real Estate’s acquisition of a 51% share in the Co-operative Group's new headquarters at One Angel Square for £142m. Other key deals included LaSalle Investment Management’s acquisition of Hermes Parcelnet’s Industrial unit in Warrington for £17.2m and InfraRed Capital Partners’ acquisition of Clayton Square, Liverpool for £14m.

Drop in activity for the retail sector

The office sector accounted for 68% of total investment activity in Q1 2013 with £143.3m worth of transactions, a considerable increase from the previous quarter of £36.15m. However, this was largely due to the sale of The Co-op’s HQ. The retail and leisure sector which accounted for 77% of the total market in Q4 2012 dropped to 20% in Q1 2013 at £42.2m. The industrial sector remained steady, accounting for 12% of the Q1 market at £25.9m.

Growing investor appetite

Abid Jaffry, Northern Head of Capital Markets at LSH commented: “While One Angel Square dominates the figures, it is indicative of a growing interest in regional offices with purchasers seeking value further North as it becomes increasingly difficult to acquire and justify Central London pricing.  Paradoxically, a lack of new opportunities in the North West is also creating a growing pressure on pricing and we are seeing healthy signs of investor interest in the marketplace.”     

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


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