Newspaper article Evening Gazette (Middlesbrough, England)

It's Been a Busy Summer in the Property Industry; Quarterly Property Deals in Association with Muckle LLP

Newspaper article Evening Gazette (Middlesbrough, England)

It's Been a Busy Summer in the Property Industry; Quarterly Property Deals in Association with Muckle LLP

Article excerpt

Byline: By JONATHAN COMBE, Head of Property Group at Muckle LLP

AT this time of year, we normally look back and review a relatively quiet quarter for the property industry.

It has always remained a mystery to me as to the exact reason for this but I've always put it down to a combination of the school holidays and the good weather (not that we saw any this summer).

Our experience over the last quarter however is that notwithstanding the summer and the impact of the recent interest rate rises, the market has remained busy and has still performed reasonably well. It is obviously going to be some time before the real impact of the recent interest rate rises factors itself back into the market and its impact on any existing development projects will certainly kick in much later. It is certainly the case that certain investment transactions have stalled but, judging by the attached deals' table, there's still been significant activity in the market.

Everyone in the market knew that yields on many properties were keen and the last few years have certainly been a seller's market. The general consensus is that it will remain a seller's market but that the market needed to receive a reality check.

If you review the attached deals table it is interesting to note that most of the transactions are investment sales of properties across the whole of our region. They comprise a mixture of retail, office and industrial units with no particular sector appearing to be favoured. The right product will always sell in the market if it provides a relatively secure rent roll and is priced appropriately.

On the development side, activity remains high. One of the current hotspots is Belmont in Durham where Argon Cathedral Park have recently completed Phases 4 and 5 of a five phase development programme. Phases 1, 2 and 3 were virtual prelets and phases 4 and 5 have been forward sold to Henderson Global Investors. The funds still remain very active in the development sector, looking to snap up investment opportunities at an early stage and many developers, including Argon, have taken advantage of this market. …

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