When it comes to investing in property, retail is king across Yorkshire, despite the demise of a number of high street stores.
But much of that could be the result of Norges Bank Investment Management, the investment manager for the Norwegian Government’s pension fund, buying a 50 per cent stake in Meadowhall.
According to research by property consultancy Lambert Smith Hampton, the sector accounted for 78 per cent of the £1.4 billion-worth of property investment deals in Yorkshire in 2012.
LSH says commercial property investment volumes doubled in the region from £732 million in 2011, but £762.5 million-worth of the £1.4 billion total was the Norges investment in Meadowhall.
Abid Jaffry, LSH’s Northern Head of Capital Markets, said: “This is the first time the retail and leisure sector has recorded such a high investment volume across Yorkshire.
“This is indicative of market trends, which sees spikes in levels as a result of very large, single transactions.
“The sector has therefore proved the asset class of choice, continuing to attract investment in spite of the sluggish conditions witnessed by both the industrial and office sectors.”
Investment in Yorkshire offices fell by 44 per cent to £133 million and investment in industrial and logistics property was down 41 per cent at £93.2 million.