A shortage of investment property supply is not holding back leading commercial property firm Shortland Penn + Moore from completing a series of deals.
In recent months, the firm has helped clients make significant investments worth in excess of £3 million with yields ranging from 14 per cent to 17 per cent.
Jonathan Moore, the company’s director of investment agency, said that availability of stock across the region is low – which is having an effect on the market – but that there are outstanding opportunities available for those able to take calculated risks and with good market knowledge.
Moore said: “The lack of supply and lack of any kind of debt funding is causing a real headache for the industry but we are still managing to get deals done – and significant ones at that.
“Available prime properties are few and far between but when they do become available, they are still attracting interest.
“The values on secondary properties are moving out if they are available with favourable conditions, and distressed sales – where a receiver has been involved – are also being completed.
“From our point of view, we have completed some very good deals for clients this year, producing very high yields.”
At the turn of the year, Moore advised Blackbrook Properties in a deal which saw the company purchase a warehouse let to the Post Office in Leamington for £600,000 after the previous owner of the building went into receivership.
Shortland Penn + Moore has also acquired an office investment in George Road, Edgbaston on behalf of a private investor for which they paid in excess of £1 million.
Moore also helped complete the purchase of a major office investment on the Binley Business Park on behalf of A&J Mucklow. The property, occupied by law firm Keoghs – which still has a further three-and-three-quarter years left on its lease, cost just over £1.5 million.
Moore said: “The economy slipping back into technical recession naturally doesn’t help with confidence but investors either still want a strong, safe investment or are happy to buy risk if the price is tempting enough, and that is what we are delivering for clients.
“Prices are not at the levels of the ‘glory days’ and it is the vendors that recognise this who are managing to conclude sales.”