North West first quarter property investments more than double to £965m
Investment volumes across the North West hit £965m in the first quarter of 2018 – more than double the volume for the same quarter last year (£440m).
The latest UK Investment Transaction report by property consultancy Lambert Smith Hampton showed that office transactions dominated (41%), while retail fell behind with the only significant transaction being Rosette Merchant Bank’s acquisition of Tesco in Oldham for £50m.
The region’s strong office performance can be attributed to two significant transactions – L&G’s acquisition of India Buildings in Liverpool for £125m, and Aviva’s acquisition of 2 New Bailey in Salford for £113m.
These same significant deals also highlight the continued appetite from UK institutions and overseas investors for secure, long-let investments – namely India Buildings’ 25-year lease with HMRC, 2 New Bailey’s 25-year lease with Salford Council and, additionally, the 35-year income strip with Rochdale Council at the Riverside scheme.
The first quarter of 2018 has also been one of the strongest quarters for alternatives on record and investment here continues unabated in the North West.
The most significant assets to change hands were the Manchester Arena, which Mansford disposed of for £102m, and Invesco’s forward-funding deal of 383 build-to-rent units in Liverpool, at £86m.
Ben Roberts, director of capital markets for Lambert Smith Hampton in the North West, said: “The North West has performed very strongly, particularly when compared with the national data, and we’re continuing to see a broad range of investors keen to invest into the region.
“The Q1 volumes are surprising given the recognised lack of stock and it is positive to see the North West having such a stellar start to the year.
“However, with squeezed stock levels and downward pressure on yields, stock selection is becoming even more important.
“Most interestingly, the alternatives sector has attracted significant investment so far this year and this is set to continue.”
