High net worth overseas investors have spent close to £1 billion buying commercial property in the Yorkshire area over the last couple of years, as the upturn in the market filters out from London to the regions.
During the past decade, overseas investment accounted for only 12 per cent of total investment in the Yorkshire commercial property market.
According to figures in Knight Frank’s recent Wealth Report – covering the years 2012-2013 – foreign investment in the region has accounted for more than 33 per cent of total investment, with just under £1 billion in transactions.
Investors are finding that second-tier cities like Leeds and Sheffield are providing better value than prime markets like London and, as confidence returns to the market, the appetite for risk is on the rise and Yorkshire has benefitted from this trend.
In South Yorkshire, investments in 2013 included a £20m deal by a private client from the Middle East for the landmark St. Paul’s car park and the casino/retail space on Arundel Gate in Sheffield. There was considerable interest in the property, which led to a competitive bidding process.
An American-based investor bought Bradford’s 117,000 square foot Godwin Street office development for £25.5 million last month. It is the head office of Provident Financial plc.
A Swiss company purchased Leeds’ Princes Exchange for £36.6 million in May 2012. This space is home to DLA Piper and Regus.
According to the numbers published in the Wealth Report, global investment in commercial property increased by 17 per cent last year to $533 billion. A further increase of 11 per cent is forecast in 2014 and 2015.
