Office investment in the UK regions slowed in the second half of 2015 but still reached £8.35 bn (€11.36 bn) for the year following a strong H1, according to figures compiled by Cushman & Wakefield.
Office investment in the UK regions slowed in the second half of 2015 but still reached £8.35 bn (€11.36 bn) for the year following a strong H1, according to figures compiled by Cushman & Wakefield.
C&W said the lull in the market was likely to be short-lived, as cash was still being allocated to the office sector and the south-east region outside London remained attractive to investors.
The first half of the year saw £4.53 bn of investment transactions, a 49% increase on the same period in 2014. In sharp contrast, the back end of the year was 29% down on the previous year, with a total investment volume of £3.82 bn.
UK institutions' market share fell by 10% over the year to 40%, with an investment volume of more than £3.3 bn. C&W said a number of investors were divesting assets in locations where they have achieved the required returns.
Overseas investors continued to be strongly active, mainly in the south-east, with a market share of 22% or £1.83 bn of the total.
The largest single transaction recorded was the Bath Road office portfolio in Slough, acquired by clients of AEW Europe from UK REIT Segro for £325 mln.
C&W described the investment pipeline in the UK regions as healthy, with £1.3 bn of assets under offer and £600 mln available.
