A rocky period for the UK property market may have created some new opportunities.
Still raw from the EU referendum, UK commercial property investment fell to its lowest level in several years during the third quarter of 2016 as investors backed away from the sector.
‘Only’ £8.7bn was invested into the asset class in the three months to September, with the average deal size falling to £13.6m – the lowest since the financial crisis. A number of significant deals fell through and properties were withdrawn from market.
An office in Wood Street, London, which German investors KanAm had been in negotiations to buy for £190m before the vote, is now being marketed again for just £180m. Not only has the impact of Brexit been felt in London, but other major UK cities have also been hit. These include Manchester, with an office block in St Peter’s Square under offer at £175m before the vote, but subsequently selling for £164m, a 6 per cent haircut.