Residential Investment Market
As reported earlier Q4 was dominated by the election and Brexit and the residential investment teams in London and Leeds undoubtedly noticed the impact on potential vendors’ decision making processes in the run-up to 12th December…… and understandably so. For our buyers however, the market uncertainty did not seem to throw them off the scent, leading to some significant transactions all across the UK, stretching from Bognor Regis, Horsham and Whitechapel, E1 to Cambridge, Liverpool, Bradford and Barnsley.
It is not often that a stabilised block of 129 fully occupied apartments in a 10 year old building come to the market in the centre of Barnsley and with a very attractive 8.5% gross yield, the purchaser did not hesitate to snap them up for a figure in excess of £10M. The same purchaser was also quick to buy two other blocks from us in Bradford and Liverpool reflecting 9% and 7% gross yields respectively with a collective purchase price of circa £8M.
Q4 was dominated by the election and Brexit and the residential investment teams in London and Leeds undoubtedly noticed the impact on potential vendors’ decision making
Moving south to Bognor Regis, the staff accommodation for Butlins, let on an FRI lease with over 18 years unexpired was acquired by a Pension Fund for over £11M reflecting a net yield of 5.4% before purchasers’ costs. This was followed by a portfolio of flats and houses in Horsham and Cambridge which was acquired by another Pension Fund for circa £15M reflecting a blended yield of circa 5.5%. Heading back into London, an unbroken block of flats in trendy Whitechapel proved too good an opportunity for one individual who recognized the strength of the local rental market and future growth potential buying in at a gross yield of 4.5% and a price close to £10.5M.
These sales and acquisitions all exchanged and completed in November and December 2019 and show quite clearly the strength, resilience and depth of residential investment as an asset class across the UK in one of the most uncertain markets within recent history.
This is not an exhaustive list of recent transactions so please do not hesitate to get in touch with us for further insight and information.
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