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What should be on your shopping list?

Shopping-trollies

10 September 2016 – by David Hatcher

Transactional volumes are in the doldrums with just £1.7bn traded in July according to Colliers International.

Shopping

With the industry now in back-to-school mode, the final few months of the year will determine whether the slowdown has been a Brexit blip or if the market is in for a prolonged slowdown. The biggest struggle may be the dearth of stock available, with sellers unwilling to let go of their crown jewels during a time of instability.

Here are some of the best opportunities to strike a deal:

Fitzroy Place, W1 – 50% stake

Price: £225m – 4% yield

Owner: Kaupthing

Sector: Office

Size: 240,000 sq ft

Kaupthing’s stake in Fitzroy Place was put up for sale last month and the new headquarters of Estée Lauder is one of the most coveted investment opportunities currently available. Aviva Investors owns the other 50% stake in the building and although its preference is not to sell, rumour is rife that if the right offer was made it would have to be considered.



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Victoria Student Halls

Price: £450m

Owner: Blackstone

Sector: Student accommodation

Size: 7,921 beds, 32 assets

Blackstone has this week put up for sale the student accommodation business it bought from the hands of Ireland’s National Asset Management Agency in 2014 when it sold the private equity firm loans taken out by Michael O’Flynn. The portfolio will be an opportunity for investors such as Brookfield, Mapletree, LetterOne to build further scale in the sector.

Winnersh Triangle, Berkshire

Price: £375m – 5.4% yield

Owner: Patrizia & Oaktree Capital Management

Sector: Office

Size: 1.4m sq ft

The market snubbed the sale of Patrizia and Oaktree’s business park near Reading earlier this year when it was put up for sale through JLL. In the run-up to the EU referendum, the market cooled for such major assets outside of London but with there being at least some more clarity, at the right price, a deal would surely be feasible.

Click here to see which other buildings should be on your list



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