The volume of investment deals involving property in Yorkshire fell by 89 per cent to £91 million in the first quarter of 2013, according to research by Lambert Smith Hampton.
The number of deals fell by 79 per cent compared with the previous quarter and the average size of a deal fell by 63 per cent to £7.57 million, according to its latest UK Investment Transactions report.
However, experts at LSH say the £750 million-plus sale of a 50 per cent stake in the Meadowhall shopping complex in October has skewed the picture, although still doesn’t account for the fall in the number of deals.
Abid Jaffry, UK Investment Transactions’ head of capital markets in the north, said: “If we were to take this (the Meadowhall sale) out of the equation, the average deal size has in fact risen by 10 per cent from £6.84 million
“Investor appetite again remained focused on retail and leisure, with the total value transacted in this sector accounting for just under 81 per cent of all activity within the region. The largest deal to complete in the first quarter was the sale of a Tesco unit in Rotherham town centre for £40 million.
“Overseas investors were the biggest net-investors into the Yorkshire market, recording just under 57 per cent of the total quarterly investment volume, and were involved in two of the top five deals by value.”
LSH says retail and leisure remains Yorkshire’s most heavily invested-in asset class.