New figures from Cushman & Wakefield have revealed investment in UK regional high street retail assets was down by 10% on last year.
This however has not tarnished overall performance of the sector in Q1, as a total of 44 assets were transacted at a combined amount of £255m. The firm said it has exceeded expectations and Brexit fears have made minimal impact.
The report found that in Q1 2016, the largest purchasers were institutions, accounting for £90.63m (37%) of total acquisitions, while property companies accounted for £65.56m (27%).
Head of high street investment at Cushman & Wakefield, Chris Lewis, commented: “The UK high street investment market remains relatively buoyant.
“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.”
Overseas investment remains strong, with Mr Lewis saying “It’s not just European money looking at regional assets, but increasingly both Far and Middle Eastern investors dipping their toe outside the relative safety of Central London.”
Meanwhile, secondary retail yields hardened by 25 basis points to 7.75% and other high street sub-sectors remained stable.