The Q2 UKIT report also finds that:
- Large portfolio deals propelled activity in Q2, while the ten largest transactions accounted for almost a quarter of total volume. This pushed Q2’s average lot-size to £35m, the highest on record and 50% above the ten-year quarterly average.
- The All Property transaction yield moved in by 23 basis points during Q2 to stand at 5.69%, its lowest level since Q4 2007. Of the core sectors, Offices saw the strongest downward yield movement over the quarter, while Retail yields moved up, albeit marginally.
- H1 2015 was a record half year for the specialist sectors. Following Q1’s record volume, Q2 saw a further £2.1bn of specialist deals. Over 80% of this was invested through portfolio transactions, and included three major student accommodation deals.
- Greater London accounted for 43% of Q2 volume, and was 33% above its five-year average. Regional single-let investment was down 32% from Q1’s strong total, but was nevertheless 7% above the five year average.
- South East Offices saw the strongest rise in activity, quarter on quarter. Volumes were up almost 60% during Q2, driven by a several large deals including Legal & General’s £135.5m purchase of the Compass Portfolio.
- Overseas were the largest buyers in Q2, accounting for over 50% of purchases, and largely dominated by North America. However, the Fast East was the largest in terms of net investment at £1.2bn in Q2.