Commercial property deals boom over Easter

Commercial property deals boom over Easter




.

Whilst numerous businesses decided to close for a four day Easter weekend, activity within the north west’s property market boomed.

A series of commercial deals totalling over £30 million were agreed during the break, prompting investors to predict a recovery for the area.

The deals included a Chorley shopping centre which sold for £22 million, a Wilmslow office block which sold for £3 million and a Warrington warehouse which was acquired for £2.75 million.

In addition, the Manchester Evening News reported that London-based investors Orchard Street Investment Management acquired the freehold of Market Walk Shopping Centre, Chorley, for £22.5 million, reflecting a net initial yield of 7.5 per cent.

Another property purchase to go ahead was the acquisition of the Market Precinct in Farnworth, Bolton, for £4 million, by St Modwen.

North-west regional director at St Modwen, Michelle Taylor, told the Manchester Evening News: “This asset provides a secure rental income with numerous opportunities to add value and improve the convenience shopping offer in Farnworth.”

The reason behind the surprising boom in the north west’s commercial property sector is a mystery to many.

Rob Lankey, Managing Director of Commercial Mortgages at Aldermore, said: “We close for bank holidays and for Christmas and New Year and we’ve had no complaints from either brokers or borrowers about holiday shutdowns.

“Furthermore, we haven't experienced peaks in demand immediately after any bank holidays, either recently or in the past. Business has peaked and then eased.... and then peaked again over the past few months, but I think that's just the nature of a market which is not operating normally at the moment. There is no obvious correlation between peaks and holidays.”

Whilst in the past, it has been hard to prove fully that there is, in fact, no correlation between the property market’s peaks and troughs, with another long weekend scheduled due to the Royal nuptials, any trends will be easier to spot.

 

Leave a comment