The North East’s investment market is officially back in business with overseas and London-based investors fiercely competing to purchase stock at a rate not witnessed for years, according to leading property firm CBRE.
CBRE’s Northern Capital Markets team, which has completed over £100m of investment transactions in the North East and Yorkshire in the first half of 2014 has witnessed strong demand for most types of commercial property especially single and multi-let industrial buildings and prime city centre offices.
CBRE’s deals have included the sale of the iconic Pitcher & Piano public house on Newcastle Quayside for £7.55 million to a UK pension fund and the sale of the 100,000 sq.ft Tesco Bank call centre at Quorum Business Park in Newcastle for £17.5m to an overseas investor. Further deals included the £4.1m acquisition of Airedale House on Albion Street in Leeds comprising 41,393 sq ft of retail and office accommodation to London based Bridges Sustainable Property Fund, the disposal of 31,636 sq ft of offices fully let to ISG Construction Limited at Woodland Park in Cleckheaton to Aston Property Ventures for £4.9 million and 5 Stonegate in York City Centre let to Joules sold to a private investor for £2.2 million.
This is welcome news for the region’s property sector which CBRE’s Senior Director of Capital Markets, Alex Whiting states has experienced five years of ‘slumber’. He explains;
“We are currently experiencing levels of investor interest not witnessed since before the recession. The improving economy across the north of England combined with the overheating London and South East investment market has focused investor interest on Yorkshire and the North East.
“The two significant North East transactions are incredibly positive news for the region and demonstrate that the investment market is definitely back in business.”
