Trafford Centre deal sets investment record
COMMERCIAL Property investment activity in the North West hit a record high of £1.8bn for the first quarter of 2010, although £1.6bn of this comprised Capital Shopping Centres’ purchase of the Trafford Centre
A report by Lambert Smith Hampton (LSH) indicates that the deal meant the total amount invested in the region’s property market increased by 156% year-on-year, and by 815% on the previous quarter.
Nick Davies, head of valuation at LSH’s Manchester office, said: “Strategic disposals are the dominant feature in an otherwise constrained market. The disposal of the Trafford Centre represents one of the most important investments deals in 2011.”
Other notable deals to have concluded in the first quarter included Aviva Investors’ acquisition of a Sainsbury’s store in Macclesfield for £36m and RREEF’s purchase of Estuary Commerce Park in Liverpool for £30m.
The retail and leisure sector outperformed the rest of the market, accounting for 59% of total activity notwithstanding the Trafford Centre deal.
Ezra Nahome, CEO and head of capital Markets at LSH, said: “Despite there being some cash rich investors in the market, the lack of available prime assets caused subdued activity across the UK as a whole.
“Due to the strong recovery in manufacturing and exports we expect the demand for prime industrial space to strengthen. However, key to all of this is the availability of prime space and funding.”
