Completed investment transactions on traditional UK high streets totalled £322.5 million across 48 transactions in the third quarter of 2015, according to research published by Cushman & Wakefield.
This means total transaction volumes for the year to date stand at £1.48bn − up 81% on the same period last year to the greatest volume since tracking the market started in 2009. This is despite a nominal 1% reduction in the volume of sales in comparison to Q3 2014.
The third quarter was dominated by portfolio transactions with two notable deals including the Peacock and Toucan portfolios, both purchased by Varde and APAM from Royal London Asset Management, for £27.3m and £24.5m respectively.
Cushman & Wakefield acted on two transactions in the quarter, the sale of 69-75 Above Bar Street, Southampton on behalf of LaSalle IM for £9.25m and the off market sale of a multi-let retail block on the south coast on behalf of LaSalle IM for £4.20m.
| Key investment transactions for Q3 2015 | ||||
| Transaction | Vendor | Purchaser | Price (£m) | NIY (%) |
| Peacock Portfolio | Royal London AM | Varde & APAM | £27.30 | 7.10% |
| Toucan Portfolio | Royal London AM | Varde & APAM | £24.50 | 6.76% |
| Arlington House, Bath | Private | M&G | £25.70 | 4.80% |
| Mayfly, Portfolio | Cerberus Capital Management | L&G | £22.90 | 5.75% |
| The Friends Life, Portfolio | AXA | ICG Longbow/OXLO | £19.90 | 10.00% |
| 43-45 Queen Street, Cardiff | Primark | Patrizia | £19.80 | 4.75% |
| 14-28 Corporation Street, Birmingham | Redevco | L&G | £15.96 | 7.19% |
| Buckingham House, Stanmore | Schroders | Private | £9.55 | 5.25% |
Retail sales experienced strong growth in recent months due to robust economic growth, low inflation and an improving labour market. Consumer confidence fell back marginally in September following the 15-year high experienced previously in the year. Despite positive news on key UK economic indicators, consumers are less positive about the wider economy and their own personal circumstances.
Jonathan Rumsey, Associate Director at Cushman & Wakefield, said: “We expect another strong quarter to finish the year. A number of portfolios remain in the market, or are indeed coming to the market, most of which are receiving strong investor interest.
“Additionally, while the occupational market has for some time now concentrated on the central London market and large prime regional centres, demand for smaller secondary centres has improved, in part due to wider improving economic activity but also due to changing consumer trends and store formats. While the majority of institutional investors concentrate on proven regional centres, a number of investors are identifying higher yielding provincial towns as areas of interest due to the improving occupational market.”
