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Research - 01/02/2016

Record year for investment volume

The latest edition of our UK Investment Transactions report reveals that 2015 was a record year for investment volume, with £66.3bn of assets changing hands. Following a subdued Q3, Q4 volume was £15.7bn, up 23% quarter-on-quarter.

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The Q4 2015 edition of our UKIT report also reveals that:

  • Investment in alternative assets was instrumental to 2015’s record. While volume for the three core sectors was 5% short of its 2006 peak, investment in alternatives was three times the ten-year average.
  • Offices volume highest since 2007. South East offices had a record year with 2015 volume totalling £3.4bn, while volume for Rest of UK offices was 30% above its annual average.
  • Portfolio deals were a prominent feature of 2015, accounting for 30% of total volume. This largely comprised alternative assets acquired by North American buyers.
  • Overseas buyers made up a record 50% of total volume in 2015. While overseas investment in London was down 10% on 2014, investment in regional assets and portfolios was up 29% and 33% respectively.
  • UK institutions were marginal net sellers for the second quarter in succession. Except for industrial assets, institutions were net sellers of all main sectors during the second half of the year.
  • Q4’s All Property transaction yield was 5.62%, edging in by three basis points during the quarter. Offices saw the strongest inward movement to stand at an historic low of 4.60%, driven by Central London offices.





     

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