Property investment buoyed by Angel Square deal
THE total value of commercial property investment transactions in the North West fell by 25% in the first quarter, according to data from Lambert Smith Hampton.
The agent said deal values fell from £283m in the final quarter of 2012 to £211.4m. This represents a 13% decline on the first quarter of 2012.
Activity was dominated by RREEF Real Estate’s acquisition of a 51% share in the Co-operative Group’s new headquarters at One Angel Square for £142m.
Other key deals included LaSalle Investment Management’s acquisition of Hermes Parcelnet’s Industrial unit in Warrington for £17.2m and InfraRed Capital Partners’ acquisition of Clayton Square, Liverpool for £14m.
The office sector accounted for 68%, or £143.3m, of total investment activity in the first quarter largely due to the sale of The Co-op’s HQ. The retail and leisure sector, which accounted for 77% of the total market in Q4 2012, dropped to 20% in Q1 2013 at £42.2m. The industrial sector remained steady, accounting for 12% of the Q1 market at £25.9m.
Abid Jaffry, Northern head of capital markets at LSH, said: “While One Angel Square dominates the figures, it is indicative of a growing interest in regional offices with purchasers seeking value further North as it becomes increasingly difficult to acquire and justify central London pricing.
“Paradoxically, a lack of new opportunities in the North West is also creating a growing pressure on pricing and we are seeing healthy signs of investor interest in the marketplace.”
