Commercial property transactions have increased in the run up to September of this year, according to research conducted by Lambert Smith Hampton (LSH).
The result of the research revealed that the value of investments increased by 22 per cent overall throughout the UK, but in the North West, this figure increased by 158 per cent from £118.87 million to £306.5 million. The investments were made up of roughly 50 per cent in office space, and the remainder included shops, hotels and restaurants.
Abid Jaffry, spokesperson for Lambert Smith Hampton, expressed: “The investment market is still continuing to demonstrate an enthusiasm to acquire appropriate opportunities. There are signs that investors are moving up the risk curve but the precursor to the majority of buys is largely quality led with assets which do not deviate from core fundamentals.”
The majority of the sales came from the UK; a third of all purchases came from overseas and one fifth came from private investors.
Speaking of the commercial property market, Mr Jaffrey, stated: “Purchasing activity is still punctuated by pauses which are caused by a reaction to financial data which can change performance parameters and drive sentiment but this may ultimately form the stimulus for much needed stock as the banks begin to manage their loan book liabilities.”
Ezra Nahome, Chief Executive Officer at LSH, explained of investments: “Commercial property continues to provide attractive returns to investors in comparison to other asset classes and following the Bank of England’s second round of Quantitative Easing, which will support continued low finance costs and stimulate interest in the market, we could witness increased investment activity over the coming 12 months.”
Speaking of the future, Ms Nahome, put across: “The underlying concerns over the stability of the UK economy could lead to a slowdown in traditional sales activity [from October to December 2011], but we do expect an increase in portfolio and debt sales as banks further downsize their loan books.”
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