Thursday, April 27, 2023
Yorkshire property investment reaches record high
A new report from Lambert Smith Hampton, reveals that £58.4bn of investment deals were completed in 2005, the highest year on record, meaning investment levels have almost doubled in the past two years.
The report - entitled 'UK Investment Transactions' - is based on data from LSH and Property Data. It demonstrates that the highest booms were in Yorkshire and Humberside (up 116%), the South West (up 81%), and East Midlands (up 74%). Investment in the South East increased by 49% and London enjoyed a similar rise (up 46%).
Miles Youdan, Investment Agent at LSH's Leeds office, says: "The Yorkshire Property market continues to see increasing demand. Irish money continues to come into the region. In fact, the largest shopping centre transaction of the year was Scarborough Property's sale of Frenchgate Interchange, Doncaster, to a Northern Irish investor for £250m, reflecting a net initial yield of 5.75%."
"Retail was the sector that experienced most investment, accounting for 62% of total activity. Shopping centre investment saw a three-fold increase from its 2004 level with £699m of purchases. British Land purchased St Stephen's Shopping Centre in Hull for £135m and the Ridings in Wakefield was snapped up for £108m. The largest transaction in the region was Hercules Unit Trust's purchase of Parkgate Retail Park Rotherham from the Stadium Group for £260m at a net initial yield of 4%."
Overseas investors were the most significant players in terms of net investment, injecting around £6bn into the market - they were often able to out-bid rivals due to lower interest rates across Europe. Institutions invested a sum to the tune of £3bn, targeting sectors and regions that they believed offered better growth potential to satisfy their longer-term investment horizon.
UK debt-backed investors continued to dominate the market, with over half of all purchases (53%), with institutions and overseas investors accounting for 24% and 23% respectively. This was influenced by the continued desire by banks to lend to the property sector.
Institutional investors were active across most sectors but UK debt-backed buyers were more active in the retail sector, with 39% of their purchases, including £7.7bn worth of shopping centres, in the sector. By contrast, overseas investors focused on buying office assets, particularly in Central London, which accounted for 47%, or £11.4bn, of their activity.
Institutional investors committed £368m of new funds into the Yorkshire and Humberside market followed by private investors who committed an additional £206m of funds.
The report - entitled 'UK Investment Transactions' - is based on data from LSH and Property Data. It demonstrates that the highest booms were in Yorkshire and Humberside (up 116%), the South West (up 81%), and East Midlands (up 74%). Investment in the South East increased by 49% and London enjoyed a similar rise (up 46%).
Miles Youdan, Investment Agent at LSH's Leeds office, says: "The Yorkshire Property market continues to see increasing demand. Irish money continues to come into the region. In fact, the largest shopping centre transaction of the year was Scarborough Property's sale of Frenchgate Interchange, Doncaster, to a Northern Irish investor for £250m, reflecting a net initial yield of 5.75%."
"Retail was the sector that experienced most investment, accounting for 62% of total activity. Shopping centre investment saw a three-fold increase from its 2004 level with £699m of purchases. British Land purchased St Stephen's Shopping Centre in Hull for £135m and the Ridings in Wakefield was snapped up for £108m. The largest transaction in the region was Hercules Unit Trust's purchase of Parkgate Retail Park Rotherham from the Stadium Group for £260m at a net initial yield of 4%."
Overseas investors were the most significant players in terms of net investment, injecting around £6bn into the market - they were often able to out-bid rivals due to lower interest rates across Europe. Institutions invested a sum to the tune of £3bn, targeting sectors and regions that they believed offered better growth potential to satisfy their longer-term investment horizon.
UK debt-backed investors continued to dominate the market, with over half of all purchases (53%), with institutions and overseas investors accounting for 24% and 23% respectively. This was influenced by the continued desire by banks to lend to the property sector.
Institutional investors were active across most sectors but UK debt-backed buyers were more active in the retail sector, with 39% of their purchases, including £7.7bn worth of shopping centres, in the sector. By contrast, overseas investors focused on buying office assets, particularly in Central London, which accounted for 47%, or £11.4bn, of their activity.
Institutional investors committed £368m of new funds into the Yorkshire and Humberside market followed by private investors who committed an additional £206m of funds.
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