Download the latest release of our H1 2016 Market Report

We are pleased to announce our bi-annual market report focussing on the North West Industrial and Logistics Market with particular emphasis on the reaction so far to the Brexit decision.

H1 2016 highlights include:

  • Total value of NW industrial investment transactions during H1 2016 stood at £245m. This represents a decline in trading compared with H1 2015 (£295m) but an increase on the £230m transacted in H1 2014.
  • The vote to exit the EU has led to a great amount of uncertainty within the market.  To date there has been only a slight weakening on prime assets, whilst larger reductions have been experienced on more secondary stock.
  • With UK 10 year gilt yields falling below 1% and continued positive news on the occupational side, we expect a possible rebound in activity towards the end of the year.
  • H1 2016 saw take up for units above 90,000 sq ft of 1.7m sq ft (8 transactions). This is slightly down on the 3.0m sq ft recorded in H1 2015. That said, there is a further 800,000 sq ft currently in solicitor’s hands.
  • The immediate aftermath of the Brexit decision has seen little change in the occupier market.  Of the 14 buildings above 90,000 sq ft either completed or under construction 6 are under offer or have terms issued to active enquiries whose occupational requirements are not likely to change in the short term.
  • Speculative funding will become more challenging, especially for secondary schemes.  However, if occupier demand remains consistent there could be a shortage of supply in certain locations which will help maintain strong rental levels.

For a copy of our full market report please click here. We shall continue to keep you advised and updated on the effects of Brexit. Should you require any additional information please do not hesitate.

20 Chapel Street, Liverpool sold in £20M Deal

Liverpool’s 20 Chapel Street office building is to receive investment after being sold for nearly £20 million.

Canmoor (advised by B8 Real Estate) has purchased the freehold of the Grade A site on behalf of British Airways Pension Trustees Limited (BAPTL) and plans are now being made to reposition it within the city centre’s office market.

The building, completed in 2008, features 155,000 sq ft of accommodation across the ground floor and 15 upper floors and is currently occupied by tenants including Liverpool Football Club, Broadway Malyan, Ernst & Young, Barclays Bank, Police Mutual and RSM (Baker Tilly).

Vacant space, which accounts for a third of the building, and the ground floor reception are set to undergo a comprehensive refurbishment this summer.

Following the deal Tom White, director at Canmoor, says: “20 Chapel Street forms a key part of the Liverpool Commercial Business District and we are delighted to have acquired this landmark office. We are committed to breathing new life into the building as well as engaging with the business community to further improve the district.

“Liverpool city centre is a thriving hub of commercial activity, with strong occupier demand driven by business expansion as well as significant residential conversions triggering a flight to quality. The difference in rents between Grade A and B office stock is minimal, but we see this gap increasing as businesses look to upgrade the quality of their premises as supply tightens.”

Andrew Owen, co-founder of Worthington Owen which has been retained as the leasing agent of the building, adds: “The new owners have exciting plans to invest in 20 Chapel Street which should return it to its rightful place as one of the best business addresses in the city.

“20 Chapel Street occupies an excellent central location and this, combined with the quality of the office space on offer and stunning river views, marks it out amongst the competition.

“The reducing stock of office accommodation within the city centre is well documented and it is highly likely that the vacant space within 20 Chapel Street and other Grade A and equivalent buildings will soon be gone.”

BAPTL and Canmoor were advised by Simon Wood of B8 Real Estate and the vendors were advised by Andrew Owen of Worthington Owen.

Private Institutional Clients of B8 Real Estate sell Prime Distribution Unit to Clients of Aberdeen Asset Management

Private intuitional investors (advised by B8 Real Estate) have completed the sale of the AAH Pharmaceuticals Limited distribution unit in Warrington to clients of Aberdeen Asset Management.

The property is in a prime location fronting junction 9 of the M62 in Warrington and is let to AAH for a further 15 years unexpired.  The vendor bought the property in January 2013 and have since undertaken a re-gear with AAH Pharmaceuticals.

The sale price was in the order of £14,000,000

Simon Wood of B8 Real Estate who acted jointly along with Kimmre on the sale said ‘We are delighted with the outcome.  My client purchased the investment in 2013 with a clear business plan to re-gear the property lease as we believed this property to be so important to AAH.  AAH have invested millions of pounds into this facility which serves as both the national hub for the company’s home deliveries and also the Northern distribution hub for their wholesale networking service which handles circa 90,000 orders per day with approximately 400 people working within the warehouse”.  This deal is evidence that Warrington continues to be recognised as a prime industrial location not only by investors but by occupiers.

Aberdeen Asset Management were advised by the Manchester Office of JLL.