Skip to main content Skip to footer

Investment volumes hit a six-month high of £3.2billion in September

11 02 20 debt advisory 22

Real estate investment hit a six-month high in September with £3.2billion being transacted during the month, the highest figure since March 2020, reports Colliers International.


The real estate advisory firm reports in its October Snapshot that investor interest has been shared across most asset classes, with industrial sectors and alternative markets, which includes the rental sector, recording the most activity, amounting to around £1billion in investment each. 

The report acknowledges that while economic activity may slow in the fourth quarter due to new lockdown restrictions being introduced by Government, already in first week of October £1.7billion had been transacted. 

Oliver Kolodseike, Deputy UK Chief Economist at Colliers International, said: “Sheds and beds will be the outstanding commercial real estate performers for this year, driven by changing consumer behaviour and demographic trends. The PRS sector has so far this year seen investment worth £3.8billion, which is already higher than any annual total prior to 2018. The largest deal last month was the £250million investment in the Morello II scheme in Croydon which Colliers' Build-to-Rent team advised on.

“Across the asset classes yields remain generally firm, with the exception of most leisure and retail segments. However, retail is generating interest again, particularly among supermarkets and retail warehouses, which accounted for more than half of that sector’s investment last month.” 

Investment volumes in the office sector reached £700million in September, and this figure has already been surpassed in October. September’s largest value deal was Quadrant Estates purchase of Nine Elms Park (plot A) for £150million. Retail investment hit around £550million, the highest monthly figure since April 2019 led by the sale of a six-asset portfolio to M7 Real Estate for £156.9million at 7.5% IY. 

Andrew White, Head of Residential at the firm, added: “Housing is still a strong asset for institutional investors and this year has brought about incredible focus on meeting housing demands as everyone has had to spend more time at home than ever before. 

“The Build-to-Rent sector has been growing year-on-year, and while property ownership is still an unaffordable pipe dream to younger generations, or not even on the bucket list for others, the demand for good quality rental accommodation close to central business districts will continue.

“This year we’ve seen significant deals we’ve advised on complete in London and Manchester and are consistently being called on to provide market insights for potential investors.”

Download October 2020 Property Snapshot Report


Related Experts

Oliver Kolodseike

Director of Economics and Research

Research and Forecasting

London - West End

Oliver is Head of Economic Research and leads the quarterly UK forecasting process including the publication of Colliers' Real Estate Investment Forecasts (REIF) report. He also  authors the monthly Property Snapshot and, quarterly Scotland Snapshot. Prior to joining Colliers, he worked for the Centre for Economics and Business Research and IHS Markit. Oliver holds a BA in Economics from  Georg-August University Göttingen (Germany) and an MSc in Economics from Exeter University.

View expert

Andrew White

Head of UK Residential & International Properties Asia

Residential - Development

London - West End

Andrew heads up the UK Residential & International Properties (Asia) Department at Colliers and is a specialist advisor in residential and mixed use developments.  He has been involved in some of the largest and most complex sites within the U.K.

The Residential Department at Colliers comprises a market leading  team of  surveyors and advisers who focus on London, The South East and the Regions, advising  clients on their options for maximising value for their assets, including planning, development consultancy, Build To Rent, investment and disposal strategy and New Homes & Project marketing, both in the UK and Internationally.

Andrew has worked in the sector since 1994  having started his career with a large multinational real estate agency, then running his own land agency for 8 years before joining Colliers in 2013. He has advised government bodies such as the NHS, as well as family businesses, funds, charities, developers and companies on their strategy for disposal of their land holdings and property assets.

Clients include, Legal & General, the NHS, Royal London Asset Management, The Diocese of London, London Square, Telereal Trilium, Threadneedle, Aberdeen Standard, Greggs, Rexel and PSA Group as well as other large corporate landowners.

View expert

Kim Inam

PR Manager

Marketing & Communications

London - West End

I'm a communications professional who has previously worked as a journalist for eight years covering a broad range of topics including politics, crime, health and housing in north London. In recent years I have worked in corporate communications for local authorities across London  and joined Colliers in October 2019, initially providing maternity leave cover.

I provide strategic public relations advice to various business lines within the UK organisation to secure recognition for their work in the property press as well as key target media, and work with our experts to produce thought leadership pieces which are of interest to our clients and colleagues within the commercial real estate sector. In addition, alongside colleagues in the PR and wider communications team, I provide media and social media training for our in-house experts to prepare them for media opportunities and raise their personal brand within the sector.

As well as supporting various teams within the UK business, I also I curate and edit regular content for the Colliers.com blog, which drives credible business leads to our experts.

 

View expert