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Investment property

Commercial Investment Property Activity

The pandemic continues to affect commercial investment property activity in the UK with levels remaining below typical for the time of the year. But as we reported in July there are signs of a slow recovery. In July 2020 around GBP2 billion was transacted, for the second month running, which was an improvement on lockdown months. However, this was still 60% lower than July 2019 transactions which were GBP5.6 billion. 


What Investment Property Was Sold?


London saw the majority of investment property activity, thanks to the sale of 25 Cabot Square in Canary Wharf to Hong Kong based Link REIT, the largest real estate investment trust in Asia. It passed hands for GBP380 million at 4.7% initial yield.


Supermarket Income REIT, a UK real estate investment trust dedicated to investing in supermarket property, also acquired a six-asset Waitrose portfolio for GBP74.1 million at 4.4% initial yield. They also bought a 68,000 sq ft Tesco Extra on Fordham Road in Newmarket, Suffolk for GBP61 million at 4.6% initial yield. 


While this activity shows supermarkets remain in high demand, in contrast, high street shops and retail parks only saw limited investment activity.


Strong Demand for Industrial Property


The available supply of UK industrial property remains well-balanced at 34 million sq ft. The five-year annual take-up for industrial property is typically 30.4 million sq ft, so figures suggest there is 1.1 years’ worth of supply in the market. Indications show strong tenant interest, with a significant amount of space currently under offer. Several large schemes are also on track to be let over the next few months. 


We have helped a number of landlords dispose of their commercial property and industrial property. If you would like help in this area speak with one of our commercial estate agents on 020 8800 4321.

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