Investment volumes across the North West property market hit almost £1bn during the first quarter of 2018 after the region performed “very strongly”, according to Lambert Smith Hampton.
The company’s latest UK Investment Transactions (UKIT) report shows that £965m was spent during the three months to 31 March 2018; more than double the £440m reported in Q1 2017.
Office transactions dominated at 41 per cent, 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 deals – L&G’s purchase of the India Buildings in Liverpool for £125m and Aviva buying 2 New Bailey in Salford for £113m.
The quarter has also been one of the strongest for alternatives on record, with investment continuing unabated in the North West. The most significant assets to change hands were Manchester Arena and Invesco’s forward-funding deal of 383 build to rent units in Liverpool.
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.”