Investment in North West commercial property in the third quarter reached £709m – more than double that of the previous quarter – according to research by property consultancy Lambert Smith Hampton.
Across the UK, regional activity in the third quarter exceeded that in London for the first time in 12 months.
Some of the biggest North West deals included Deutsche Asset and Wealth’s £100m purchase of 2 St Peter’s Square, Manchester; LaSalle Investment Management’s £62m acquisition of Snipe Retail Park, Manchester; and Frontier Properties’ £105m purchase of Houndshill Shopping Centre in Blackpool.
The region has bucked the national trend, with overall UK commercial property investment down by 23% on the previous quarter, at £12.8bn, according to a UKIT report.
LSH researchers found that investment across all commercial property assets boomed in the North West’s third quarter.
Office market activity was particularly buoyant, up 135% on the previous quarter – largely due to the sale of 2 St Peter’s Square.
The retail and leisure sector reached £226m for the quarter, accounting for 32% of investment activity.
The £51m sale of Matrix Business Park saw investment in the industrial sector reach £164m for the third quarter, up 100% compared with the previous quarter.
Ezra Nahome, LSH chief executive, said: “London continues to perform strongly and will remain the most important market for overseas investors. However, it’s encouraging to see capital flowing back into the regions in a meaningful way as investors rebalance their portfolios in response to improving confidence and the price of assets in London.”
