Member Article

North East commercial property market makes a comeback

The North East’s commercial property sector increased its value to an estimated £600 million in 2013, a 158% rise on the previous year, according to a national property consultancy.

Research by Lambert Smith Hampton (LSH) showed that retail and and leisure is the most popular asset class among investors in the region.

The report pointed to two significant deals including the Tuscany Retail Portfolio at £112.5 million and Silverlink Shopping Park for £131 million.

Deal volumes in the sector represented 57% of the annual aggregate investment figure and ammounted to £334 million - a 124% increase on 2012.

Office investment in the North East rose from £2.5 million in 2012 to £93.75 million in 2013 - and accounted for 16% of the region’s total investment volume.

Key deals in this area included Orchard Street Investment Management’s acquisition of an office building on Gallowgate in Newcastle for £24.68 million and DTZ Investment Management’s purchase of a leisure unit on Walkergate in Durham for £13.5 million

Abid Jaffry, regional director of Capital Markets, said: “Investment activity within the regions has increased significantly throughout 2013 as investors are being priced out of London. There are some genuine real value opportunities, which we expect to continue to see into 2014.”

The research featured in Lamber Smith Hampton’s UK Investment Transactions quarterly publication.

This was posted in Bdaily's Members' News section by Tom Keighley .