Figures released by Lambert Smith Hampton show that the value of commercial property deals in Wales increased by 143% during the third quarter of 2012.
The property consultancy’s firm’s investment research has revealed that the overall value of commercial property deals in the period between July and September came in at £90 million.
These figures were higher than the showing in the second quarter, which saw £37 million in commercial property change hands.
The majority of transactions were within the retail sector, with an increase of 114% in deals in Q3. Sales figures increased from £36 million in the second quarter to £77 million.
The Welsh office market was very healthy, with 1,100% growth in Q3. A total of £12m worth of deals was completed, compared with just £1m in the second quarter of the year.
The industrial sector remained constant at £1m throughout both quarters.
Three large transactions were responsible for driving the market in the third quarter. The largest one was in the retail sector.
NFU Mutual Insurance Company purchased a retail park in Pontyclun worth £44.15 million. The building has a yield of 5.8%.
The second-largest sale in the period involved fashion retailer Next whose Cardiff retail property raised £25.8 million with a yield of 5.5%.
The Topland Group purchased the Capital Tower and Friary House in Cardiff for £12.35 million with an 18.9% yield.
This handful of deals were responsible for thrusting the Welsh market through to a “buoyant third quarter,” according to Owen Jones, associate director of Lambert Smith Hampton’s investment division.
The encouraging figures show that when opportunities become available in modern and well-let regional locations, investors are attracted by the secure income these properties can provide.
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