Investment Brief - Autumn 2019

As well as analysing the key trends, we provide a review of the notable portfolio transactions across sectors, a breakdown of the buyers and sellers and a 2019 outlook.

During 2018, we advised on £2.5bn of real estate acquisitions and disposals. Three-quarters of this total was transacted either ‘off-market’ or via restricted marketing campaigns.

In an uncertain environment, the portfolio investment market is becoming more opaque, and trusted advisors make all the difference.

This is where we come in. We know the portfolio investment market better than anyone.

Key trends

• ‘Beds and Sheds’ account for two thirds of portfolio investment.
• Alternatives accounted for over half of portfolio activity with £5bn transacting across 34 deals – 73% across “Beds” (Hotels 53% and Student 20% of alternative sector volumes).
• Record demand for industrial portfolios with 35 deals transacting totalling £2.54 bn (27%) – the highest volume recorded since our portfolio research began 13 years ago.
• Conversely, retail and mixed portfolio transaction volumes were at their lowest levels over this same time period.
• Office portfolio volumes were up 11% compared to 2017 levels, driven by three notable transactions over £200m.
• Portfolio transactions accounted for a quarter of investment outside of London underlining the importance of portfolio deals to overall investment levels.
• Overall portfolio transaction volumes were down on 2017 levels skewed by a lack of transactional activity in retail and mixed sectors, but remain above the long-term average.
• Significant appetite for portfolio opportunities – albeit limited to certain sectors and composition types with the majority transacted off – market.