Industrial investment volumes hit EUR 10b in 2011: JLL

European industrial investment volumes totalled EUR 9.9 bn in 2011, the third-largest annual transaction figure on record after the boom years of 2006 and 2007, Jones Lang LaSalle said on Monday.

The full-year 2011 figure was helped by a strong final quarter, which saw EUR 3 bn of transactions take place, the highest quarterly volume since the final quarter of 2007.

The UK, Germany and France continued to be the most traded markets in 2011, accounting for over EUR 6 bn, more than 60% of total full-year volume. Investment activity intensified throughout the second half of the year as investors targeted markets with large pools of trade-able assets perceived as a ‘safe haven’, JLL said. Significant competition for limited core assets within the three main country markets also benefited neighbouring Benelux, where volumes increased by 126% over the year to EUR 820 mln.

The healthiest annual growth was recorded in the core Central European markets, including the Czech Republic, Hungary, Poland and Slovakia. Transaction volumes reached EUR 630 mln, 156% ahead of 2010.

Penny Hacking, director of JLL’s European Industrial Capital Markets, said demand for European industrial assets remained strong. ‘Notably, we see increasing demand from a growing range of investors targeting the sector, in particular global players seeking larger portfolio logistic deals in Europe.’