Industrials drive dealmaking for Shoosmiths’ real estate investment group in Q3 2024
October, 2024 - Milton Keynes, England
Shoosmiths’ real estate investment group reported a continuing improvement in market activity and sentiment during Q3 2024 (July 1 - September 30).
The most active sector for deals was industrials, with the group advising on acquisitions and disposals, as well as the build to rent market.
Example transactions include advising TT Group on two industrial-led deals - the sale of Eldon Way Trading Estate in Biggleswade, Bedfordshire, to Chesham Capital and the acquisition of Saxby Road Industrial Estate in Leicestershire, a multi-let industrial and warehousing asset.
Nathan Rees, partner and joint head of Shoosmiths’ real estate investment group, said:
“The industrials market continues to show strong activity - investors are increasingly recognising the sector’s solid fundamentals, with rental values growing 6.5% annually, according to Abrdn.
“Confidence in UK real estate is returning, aided by the global interest rate reduction cycle that is easing funding conditions. Many investors are now focused on Labour’s first budget and Industrial Strategy in October, seeking clarity on potential policy changes.
“While there are signs that the market is turning a corner, it’s vital for policymakers to build on this momentum. The real estate industry is a crucial creator of new homes, employment spaces and jobs, and plays a key role in unlocking the investment and business activity that is needed to revitalise the economy and ensure prosperity across the UK.”
In the living sector, Shoosmiths acted for Bluecastle Capital on the acquisition of a prime development site in Cardiff from Rightacres Property. The site has consent for 364 build to rent homes, forming part of the 35-storey Central Square regeneration scheme.
Kate McCall, partner and joint head of Shoosmiths’ real estate investment group, added:
“We are seeing a dynamic shift in investor appetite across a range of asset classes. Our team is advising clients on this, helping them to navigate emerging opportunities.
“Despite some economic headwinds, the appetite for the right investments opportunities is strong, and if stability holds, we are confident this positive trajectory will continue through the final quarter and into 2025.”
