In­vest­ment trans­ac­tions soar in third quar­ter as out­look re­mains pos­i­tive

Belfast Telegraph - Business Telegraph - - Commercial Property - BY MAR­GARET CAN­NING

SPEND­ING by in­vestors in com­mer­cial prop­erty here leapt to nearly £200m in the third quar­ter as ma­jor as­sets such as Castle­court Shop­ping Cen­tre changed hands, a report to­day said.

And com­mer­cial prop­erty agency Lam­bert Smith Hamp­ton added that their out­look for the rest of the year was pos­i­tive.

Their in­vest­ment trans­ac­tions bul­letin said other big-ticket re­tail deals such as the £27.7m sale of a Tesco Ex­tra in Newry also helped push up the level of in­vest­ment to 12 times that in the first quar­ter.

In fact, re­tail trans­ac­tions — amount­ing to £172.8m — ac­counted for just un­der 90% of ac­tiv­ity in the quar­ter. And Wire­fox’s pur­chase of Castle­court in Belfast was by far the big­gest deal at £123m.

Sales of as­sets such as car parks, ho­tels and care homes man­aged to eclipse ac­tiv­ity in the core sec­tors of of­fice and in­dus­try.

The sale of care homes in Ar­magh and Jor­danstown by Pri­ory Group in Au­gust to LXI Real Es­tate In­vest­ment Trust for nearly £15m was the big­gest deal in the mixed-use sec­tor, LSH added.

Neil Mcshane, di­rec­tor in the cap­i­tal mar­kets di­vi­sion at LSH, said: “In the first half of this year we did record a drop in ac­tiv­ity lev­els. How­ever, in the se­cond quar­ter there were pos­i­tive signs that a stronger re­sult was in the pipe­line. The out­look for the fi­nal quar­ter of 2017 is pos­i­tive for the com­mer­cial prop­erty mar­ket.

“The main bar­rier to ac­tiv­ity in the first half of 2017 was the mis­match be­tween healthy in­vestor de­mand and the scarcity of larger value as­sets avail­able.

“The pick-up in the third quar­ter and forecast for quar­ter four is the re­sult of an in­crease in sup­ply of good qual­ity, larger value as­sets.

“These as­sets have helped to re­lieve in­vestor frus­tra­tions, although they have been pre­dom­i­nantly in the re­tail sec­tor. A fluid sup­ply of this as­set type is re­quired to main­tain ac­tiv­ity.”

Investments for the whole of the year were ex­pected to reach £350m —25% higher than 2016. Mr Mcshane added: “Re­cently, there has been a trend of com­pet­i­tive bid­ding for smaller lots with at­trac­tive ten­ants. For ex­am­ple, the Star­bucks and Boo­jum prop­er­ties on Botanic Av­enue, the Caffè Nero in New­cas­tle and the Greggs prop­er­ties in Ban­gor and Lis­burn have at­tracted sig­nif­i­cant in­ter­est amongst lo­cal in­vestors. In the com­ing months, a num­ber of sim­i­lar prop­er­ties will come to mar­ket, and again we ex­pect they will gen­er­ate high lev­els of in­ter­est.

“It is pos­i­tive to see that the health of the North­ern Ir­ish in­vest­ment mar­ket is show­ing signs of con­tin­ued re­silience.”

Castle­court Shop­ping Cen­tre in Belfast was sold to Wire­fox for £123m

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.