Savills sees rise in overseas investor appetite for UK food stores

Savills sees rise in overseas investor appetite for UK food stores

Todays other news
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
The first one is in Manchester - but will the...
Grainger is selling its low-yield stock and pinning its hope...


International investors’ interest in UK food stores is likely to increase this year, according to a new Savills report, as the plunge in the value of the pound continues to attract investors despite uncertainties over Brexit.

The international property advisor reports that investment into UK food stores reached £1.23bn in 2016, with operator-led transactions dominating the market, accounting for around £590m; 49% of total volumes. But excluding these operator-led deals, foreign investors were the most active in the sector, accounting for 22% of volumes, equating to about £257m.

Middle Eastern investors have been particularly active in the sector, accounting for £180m of investment, Savills said. This resulted in 2016 being their most active year on record accounting for almost 70% of total overseas investment.

The longer leases associated with the sector and index linked reviews continue to make food stores an attractive asset to overseas investors.

London and the South East continued to be the most liquid markets, accounting for almost half – 47% – of volumes, while there was a 15% rise in investment into the capital as the residential angle offered by some assets intensified investor interest.

Katie Taylor, investment director at Savills, said: “Overseas buyers have been a dominant investor in the market appreciating the longer term strengths of the food store sector. 

“The globally recognised brands, ease of management, certainty of income and wealth preservation benefits associated with the sector continues to appeal to international buyers, and has been further boosted by the recent currency play. 

“As income security has become a bigger concern following the EU referendum vote, we suspect we’ll start to see the institutional investors start to come back in 2017.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Property Investor Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
We wish all Property Investor Today readers a successful 2025....
Property Investor Today is taking a short break...
The cottage just on the market is next to one...
A survey by Zoopla has revealed that buyers - whether...
Spain’s draconian new tax is already spooking British investors...
The Budget has forced a revision of forecasts for the...
Prices and sales volumes will grow in 2025 despite the...
Recommended for you
Latest Features
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
Sponsored Content
As the property industry shifts towards sustainable practices, Inspired Property...
Are you concerned about rising interest rates and their potential...
In the ever-evolving landscape of property investment, staying ahead of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here