Total investment activity in Yorkshire increased by approximately 76% during Q3, of which just 5% was office stock. The majority of the transactions were within the retail sector, with the largest transaction being the sale of the Victoria Quarter in Leeds for £136m. Compared to Q3 2011, total investment activity remained stable.
Investor demand remains focussed on prime assets and in particular city centre assets, which has had an adverse effect on out of town office stock. Prime office yields in Leeds city centre currently stand at circa 7%. However, we are still experiencing a considerable yield divergence away from the prime end of the market.
- Hammerson Plc acquired the Victoria Quarter in Leeds for £136m - reflecting a net initial yield of 5.25
- Gatehouse Bank Plc acquired 115-126 Briggate in Leeds for £33.4m - reflecting a net initial yield of 6.35%
- Praxis Holdings acquired Crossgates Shopping Centre in Leeds for £29.5m - reflecting a net initial yield of 8.5%