£3bn has been invested into UK commercial real estate in Q2 2020 compared to £15.4bn transacted in Q1

£3bn has been invested into UK commercial real estate in Q2 2020, compared to £15.4bn transacted in Q1, amounting to £18.3bn for the first half of 2020, according to the latest investment data from Colliers.

The largest deals in Q2 include SEGRO’s purchase of a 23-unit industrial estate at Perivale Park in Greenford for £202.5m at a 3.5% yield, L&G’s acquisition of an office and BTR scheme at Sheffield’s West Bar Square for £150m and the sale of 55 Ludgate Hill to Union Investment RE for £139m at 4.5% yield.

Oliver Kolodseike, associate director in the Research team at Colliers, said: “Despite the slowdown in investment volumes in the second quarter, there are signs that activity is picking up again and we are aware that up to £2.5bn worth of contracts are currently in the making. As investment volumes recover it will bring more transaction evidence to the market and may result in a modest recompression of prime yields in some segments of the market.”

John Knowles, head of national capital markets at Colliers, added: “The rise of e-commerce as more people shop online during this time has helped keep the industrial investment market relatively steady. Development opportunities and sectors such as PRS and student accommodation still remain attractive, helped by their longer lead times and underlying robust market fundamentals.”