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Property: is it time to favour secondary markets?
by Elsa Buchanan on Sep 11, 2013 at 11:01
Geographically, while Langlands Pearse argues the South East is still a focus, yield compression in the region has caused strong price movements in the secondary market.
He has recently bought a logistics/industrial estate in Hoddesdon, Hertfordshire, for £74.5 million; a £6.3 million distribution unit in West Thurrock, Essex; and a £19.8 million large single-let distribution unit at Trafford Park, Manchester.
Spreading geographic risk has also led him to hold a £21 million Marks & Spencer department store in Nottingham, and a £11.6 million multi-let retail park in Inverurie, a commuter town outside Aberdeen.
He does not hold any property in Central London, where he says 3% to 5% yields are too low compared to 6.7% income returns outside of the capital.
Within retail (20.7% of the portfolio), Glover holds properties in what he describes as ‘top 100 retail destinations’, such as the cathedral towns of York, Chelmsford and Chichester, along with Edinburgh, where supply is tight and capital growth is supplemented by tourist spending.
Within retail warehouses, where he holds 21.5% of the portfolio, he owns properties in Royal Tunbridge Wells and East Grinstead in Sussex, areas he refers to as ‘not oversupplied’.
For over three years he has bought offices in Cambridge, Leeds and Manchester, where he believes there is a more ‘tactical’ story.
Stephen Elliott , manager of the Royal London Property fund, has been finding opportunities in alternative markets, having recently acquired car showrooms in Huddersfield, Cardiff and Maidenhead and hotels in Leeds, Solihull and London.
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