Editor, The government has just announced a £2bn injection into the regions (PW, 11 July, p11).
This comes as investors face increasing competition for prime assets, to the extent that they often cannot substantiate values and have to assign funds to alternative opportunities.
With recent market reports indicating decreasing commercial space in all UK regions, there is a rising fear that investors will look elsewhere for available products that meet their requirements. Perhaps they will look to our European neighbours.
While not an immediate fix, the regional investment will help keep the money here. It will boost the regions, particularly Manchester and Birmingham, encouraging investors to redevelop and refurbish local sites, creating higher value assets across the UK in the process.
We’ve already seen evidence of an appetite for regional investment - a client that was looking for stock in London to no avail, and found an investment with the right risk profile and return in Scotland. Let’s hope we see more of this.
Being open to new opportunities requires flexibility, and smaller investors may have the advantage because they can be more agile.
In the short term, the key will be to act quickly to snap up opportunities.
An enhanced due-diligence process is required, one that involves swift pre-acquisition surveys, and proactive agents and consultants who are aware of good stock and can put the right people together.
In short, working smarter and faster, before reaping the rewards of the regions.
Steven Day, director CS2