£8 billion of UK commercial property on sale on 23 June now gone
Around £8bn of the £14bn+ worth of UK commercial property deals in the market on the day of the EU Referendum have now completed, according to research from Cushman & Wakefield.
With 54% sold, a further 15% under offer, and 25% withdrawn that leaves just 6% of deals (by value) still in the market – and paints a clear picture of the impact of the Brexit vote on deals ‘live’ on 23 June 2016.
More than 200 office, retail and industrial assets have transacted, accounting for 45% of total investment activity in the second half of 2016.
Jason Winfield, Head of Investment Agency, UK & Ireland, said: “By tracking deals from before the nation went to the ballot box in June we have gained a unique picture of how the market has subsequently reacted to the vote for Brexit.
“Deals have taken longer to complete and a greater proportion have been withdrawn but, on the flip side, values have held up remarkably well reflecting the UK’s strong fundamentals. That said, we do not yet know the full implications of the UK’s decision to leave and how that will manifest itself in occupational markets.”
Nick Allan, Partner and Head of Cushman & Wakefield’s Bristol Investment Agency team, commented: “The recovery of pricing in the investment market has been far swifter than many commentators anticipated.
“The lack of supply of suitable product since the summer has led to inevitable competition between investors for the limited stock made available and we have certainly seen that for prime product yields are back to pre-Brexit levels.”
Key deals which have completed in Bristol, post-Brexit, include the sale of 3 Glass Wharf by Salmon Harvester.
The building which will be let on a 25 year index linked rent to HMRC is understood to have sold at around £75m reflecting a yield of sub 4%.