commercial property lambert smith hampton

News - 01/08/2013

Growing appetite for investment in the North West

Findings from our latest UK Investment Transactions (UKIT) report show that the total value of commercial property investment transactions increased in Q2 2013 to £292.43m from £211.4m in the previous quarter.

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Across the region, this represented an increase of 38% from Q1 2013 and a considerable improvement on Q2 2012 levels of £142m.

Healthy demand for prime stock

Activity was dominated by Crown Estate’s acquisition of The Coliseum Shopping Park at Ellesmere Port for £80m, accounting for 28% of total investment activity. Other key deals included Oaktree Capital Management and Moorfield’s acquisition of 100 Barbirolli Square, Manchester for £41m, LaSalle Investment Management’s acquisition of the shopping centre at Church Square, St Helens for £27.73m and Canada Life Assurance’s acquisition of Grand Central, Stockport for £22m.

UK buyers dominate the North West market

Abid Jaffry, Director and Regional Head of Capital Markets at LSH commented: “The number of key transactions completed in Q2 2013 highlights the growing appetite for investment in the region. The major investors within the North West were UK Buyers, accounting for 93% of the quarterly total, as they seek value away from the ultra competitive Central London market. However, there is still the problem of a lack of prime stock to satisfy the growing number of requirements.”

Retail sector activity levels up 176% on the previous quarter

The Ellesmere Port deal provided a significant boost to the retail sector with activity levels increasing by 176% from the previous quarter. The office sector which accounted for 68% of the total market in Q1 2013 dropped to 34% in Q2 at £99.6m and the industrial sector remained steady, accounting for 12% of the Q2 market at £35.79m.

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


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