Edinburgh was the most active investment market in the UK regions in the second quarter, spurred by two of the biggest deals outside London, according to GVA’s latest Big Nine report.
The Scottish capital attracted £124m of investment – more than double its 10-year quarterly average – after the sale of New Uberior House to MAS Real Estate for £71m. The sale of West Register Street to Hines added a further £53m to Edinburgh’s total.
Investment in the nine largest regional markets totalled £500m in Q2 – 1.6% below the 10-year average of £508m, but almost 37% down on Q1’s £792m.
Edinburgh and Leeds were the only markets that outperformed their 10-year and 12-month quarterly averages. Despite averaging £253m per quarter over the last year – the highest of any regional city – Manchester’s total came to just £83m in Q2.
The report suggested the fall in investment was a reflection of lack of supply and development stock rather than demand.
Prime office yields continue to tighten in the regions, falling 25bps, year-on-year, in the big nine to 5.17%.
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