UK retail warehouse investment volumes were subdued in the first quarter of 2016, according to Cushman & Wakefield.
Transactions totalled around £196m, with 10 assets exchanging or completing − a 73% decrease on the same period in 2015, which saw 28 transactions totalling £730.9m.
However, there is currently around £380m of retail warehouse stock under offer and a further £300m on the open market, broadly in line with Q1 2015 figures.
The acquisition of Templars Retail Park in Oxford by Pramerica for £75.69m was the headline deal of the quarter and accounted for 39% of the total volume transacted.
Other notable deals include the sale of Gallagher Retail Park in Bristol by Savills Investment Management for £32.3m, reflecting a 5.9% yield, and Portman Estate’s purchase of Wickes in Bracknell for £14.9m − a 5.73% yield.
Cushman & Wakefield acted for Next on the sale of its site at Kingswood Hull for £12.4m, reflecting a 5.25% yield.
Yields remained static across all sub-sectors of the retail warehouse market in the first quarter.
The most active purchasers during the first quarter were funds, which accounted for £176.4m of all acquisitions, with Pramerica being the most significant player.
REITs came in a distant second, accounting for £11.8m, with Custodian and Drum Income Plus both active in the market.
Private equity firms were the largest sellers, disposing of £76.7m worth of retail warehousing stock. Funds made up £60.1m of disposals, with the sale of Gallagher Retail Park in Bristol accounting for more than half of the total.
Patrick Knapman, head of retail investment at Cushman & Wakefield, said: “Volumes in the first quarter of the year have been significantly down against 2015. With investors exercising caution until the outcome of the EU referendum is known, we expect volumes up to the half-year mark to be materially down against last year.”
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