​Regional high street investment down in Q1, but analysts remain positive

By

Barbara Santamaria

Published
May 4, 2016

Although UK high street investment volumes were down 10% in the first quarter of 2016, industry experts said the market remains buoyant.

Research out on Tuesday by Cushman & Wakefield showed that 44 regional high street retail assets were transacted for a combined £255m in the period.

“The UK high street investment market remains relatively buoyant,” says Chris Lewis, Head of High Street Investment at Cushman & Wakefield. “The EU referendum has perhaps slowed the market a little, but many investors are unfazed, seeing the current market as an opportunity to buy with limited competition, or to sell into a market scarce of stock. Consequently the vote is having far less impact than in other sectors with sales increasing as the quarter wore on – with the majority of larger transactions going through in March.”

Notable transactions completed in the first quarter of the year include the acquisition of 61-96c Queensmead, Farnborough by BMO Real Estate for £16.75m, the sale of 7-19 Amhurst Road, Hackney, to TH Real Estate for £13.50m and the sale of 42-48 Market Street, Manchester, by Canada Life Investments for £13.23m.

“We continue to observe an increase in foreign investment. It’s not just European money looking at regional UK assets but increasingly both Far and Middle Eastern investors dipping their toe outside the relative safety of Central London. Lured by attractive returns and a very real occupational growth story, many are willing to look for stronger returns in the likes of Edinburgh, Glasgow, Manchester, Liverpool and Birmingham,” said Lewis.