The value of industrial property investment deals in the North West rose by 150% in the first quarter of 2023 compared to the same period last year, according to figures from specialist industrial agents B8 Real Estate.
They show that 17 deals with a total value of around £313m completed during the first three months of this year, compared to 17 deals totalling £125m in the first quarter of 2022.
Four deals accounted for around 77% of the total value - Amazon’s acquisition of its unit in Bolton for £43m, Leftfield’s acquisition of a Warrington unit for £32m, Blackstone’s acquisition of Central Trading Estate in Trafford Park for £71.5m, and Copley Point Capital’s acquisition of two warehouses in Warrington and Skelmersdale as part of a £123m deal.
However at the opposite end of the scale smaller private investors were also active, with deals under £5m accounting for nearly half of all transactions, compared to less than a third in the same period last year.
John Burrows from the investment team at B8 Real Estate says: “Transactions in the first quarter have been dominated by deals at opposing ends of the spectrum. Whilst there have been a few large deals, the figures also reflect the resilience of private investors who are continuing to actively seek opportunities, especially those with access to cash.
“Whether they are investing for the long-term, or for shorter value-add opportunities, private investors have confidence in the fundamentals of the industrial property market. They also have the added incentive that due to inflation, any money they have in the bank is losing value.”
John Burrows added: “Despite these surprisingly strong figures, the lack of properties on the market is limiting the number of transactions. Many vendors are reluctant to sell at present because they fear that with the current high interest rates, they may not achieve the best price for their property. In the event that interest rates do fall soon, we are likely to see more properties coming on to the market.”