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Investment Market Update

UK High Street A typically quiet start to the year - Q1 2014

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A research produced by DTZ

UK high street retail investment transactions (excluding prime Central London, auction and portfolio transactions) reached £209 million across 63 deals. This is a 67% increase on the £125 million transacted across 49 deals in Q1 2013.

Although the Q1 figure is a decrease on the very active final quarter of 2013, it is in fact a typical start to the year; every first quarter of each calendar year since 2010 has shown the lowest quarterly deal volume of all quarters. Indeed, the £209 million traded is in fact a 67% increase on the £125 million transacted across 49 deals in Q1 2013. In addition to completed deals, there are 76 deals with a total expected value of £362 million (based on quoted prices) that are currently under offer or have exchanged. This figure is 32% higher than the £273m that was under offer at the end of Q4 2013, demonstrating continued investor demand in the sector.

There remains a significant weight of money chasing stock across all retail sub-sectors and, with a large volume of deals currently under offer, it is foreseeable that this positive momentum will run through to the second half of the year. However, while the demand side remains robust, there are concerns as to whether the supply side is prepared to respond, which could lead to a shortage of stock.

The largest transaction of the quarter was Henderson’s purchase of the Debenhams in Southsea for £13.8m. Other notable transactions include East Street in Chichester, Penny Street in Lancaster and Piccadilly in Manchester, as set out below.

Source : DTZ (Groupe UGL)

Keywords : DTZ