Investments

Best year for Yorkshire since recession as it attracts Q4 investment worth £407m

investment

Yorkshire attracted £407m in the last quarter of 2018 to take its annual investment figures to £1.9bn, according to Lambert Smith Hampton

The last year proved to be the strongest year for Yorkshire in terms of investments since the recession, with investments reaching £407.3m in the last quarter of 2018. The Q4 boost took the total annual investments tally to £1.9bn for the year, according to data from Lambert Smith Hampton’s (LSH) latest UK Investment Transactions (UKIT) report.

Although the Q4 figure was down 27% on Q3 (£557.3m), the actual number of deals in the quarter represented a like-for-like uptick of 34%. But the average size of transactions fell between the two quarters, dropping from £15m in Q3 to £9.9m in Q4.

According to LSH, it reflects investor caution as the Brexit deadline looms – a hesitancy that is forecast to deepen during Q1 before recovering later in 2019.

The total investment volume for 2018 marked a year-on-year increase of 44%.

Large transactions in the three months to December 31 included Cassidy Group’s £84m acquisition of the Pennine Centre in Sheffield; Aberdeen Standard Investments’ £38m disposal of a 415,000 sq. ft. warehouse at First Point Logistics Park, Doncaster; Aviva Investors’ £32m purchase of 1 City Square in Leeds; and LSH’s £26.5m swoop, on behalf of Hillview Real Estate, for Lawnswood Business Park in north Leeds.

LSH’s head of capital markets for Yorkshire and the North East, Luke Symonds said of the findings that 2018’s performance shows that despite on-going political and economic uncertainty, Yorkshire is a very resilient market.

Symonds said that it is telling that UK buyers rather than overseas investors have driven volume, where sterling weakness could be seen by many as a buying opportunity for foreign wealth.

Looking ahead, it expects subdued activity in the next quarter as investors wait for clarity on the nature of the UK’s exit from the EU. However, volumes are likely to bounce back later in the year, he added.

Comment here