Completed retail warehouse transactions in Q2 2015 totalled £635m across 28 deals, reflecting a 33% increase on Q2 2014 volumes.
This brings the half yearly total to £1.31bn, according to research published today by DTZ.
The second quarter of the year saw a number of large transactions. The five largest had a combined value of £298.4m, accounting for 46% of total transaction value during the period.
Funds continued to dominate acquisitions in Q2 2015, accounting for 79% of purchases, with key players including L&G, Schroder’s, M&G and Standard Life.
The vendor profile was also dominated by funds, which accounted for 61% of sales. Key players such as Aviva, Aberdeen and Threadneedle continued their trend of being more active, accounting for 61% of all sales by volume.
DTZ head of retail warehouse and leisure investment Marcus Wood said: “The first half of the year has seen strong liquidity in the retail warehouse sector. Stock has increased, with a significant amount set to enter the market in H2 as a number of funds look to take advantage of market liquidity. We believe supermarkets are currently oversold, with yields stabilising by the end of the year, while the household goods and furnishings segment has seen positive retail sales growth, which should indicate rental growth.”
Key investment transactions in Q2 2015
| Scheme / Portfolio | Vendor | Purchaser | Price – £m | Net initial Yield – % |
| Birstall Retail Park, Leeds | Aviva/BL/Hermes | L&G | 110.00 | 6.52 |
| Gateway Retail Park, Beckton | Aviva | Standard Life | 47.75 | 5.80 |
| Brislington Retail Park, Bristol | Aberdeen | Aberdeen | 47.35 | 6.10 |
| Monks Cross Shopping Park, York | BA Pension | Overseas Investor | 47.00 | 4.50 |
| Newcastle Shopping Park, Newcastle | Aberdeen Asset Management | M&G | 46.25 | 5.75 |
| Acorn Retail Park, Crawley | Cantium Developments Ltd | Aberdeen | 19.50 | 4.75 |
Source: DTZ
