Osbourne King have reported that with over £90 million worth of transacted sales during the last three months, the market is poised to capitalise on the return of some institutional investors into Northern Ireland.

While the institutions have focused predominantly on mainland UK, they are also re-investing in Northern Ireland as evidenced by the recent sale of Damolly Retail Park, Newry to London-based Metric Property Investments plc for £34.9 million reflecting a net initial yield of 6.25%. In August, the vendor of Damolly Retail Park, Corbo Properties, also completed the sale of 48-54 Donegall Place, Belfast. CBRE Investors acquired the 83,000 sq ft property, which is let to Marks & Spencer plc, on behalf of an international institutional investor for £8.75 million reflecting an initial yield of 5.25%.

Scottish Widows Investment Partnership (SWIP) announced that it had purchased Longwood Road Retail Park at Newtownabbey on behalf of Scottish Widows Unit Fund (SWUF Ltd) from Corbo Properties for £48 million. Osborne King represented the vendor in all three of these recent sales.

These sales highlight the fact that investors are basing their acquisition decisions focusing on quality, income-producing stock offering stable yields. The fact that fund managers are investing more widely in commercial property is a vital step forward in terms of stimulating the market whilst also serving to redress the balance between private and institutional investment. This should encourage new inward investment during the coming months. As we approach 2011, the main challenge is to build on the momentum of recent sales and encourage cash rich institutions and property companies to continue to consider further investment opportunities in the Province.

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