M&A property deals on the increase

The UK property sector saw a surge in M&A deals in the last quarter, according to research by accountancy firm Grant Thornton. 


The UK property sector saw a surge in M&A deals in the last quarter, according to research by accountancy firm Grant Thornton. 

The UK property sector saw a surge in M&A deals in the last quarter, according to research by accountancy firm Grant Thornton.

The firm’s Property M&A Tracker records non-residential, real estate and development transactions and found that there were 30 deals in the third quarter of the year, a 36 per cent increase on last year. In addition, combined deal values reached £4.1 billion, the highest quarterly figure this year by £2.2 billion.

Clare Hartnell, head of property and construction at Grant Thornton, said: ‘Although the results this quarter were strengthened by big ticket M&A activity, recent easing of the availability of credit coupled with lower interest rates may have spurred-on buyers back into the property deals market.’

One of the most significant increases was in non-residential property transactions, which rose by 113 per cent on the last quarter to 17. Hartnell said: ‘On the face of it, this quarter indicates that a number of companies are beginning to react to general improvements in the property market. Nevertheless we view this up-tick in activity cautiously as the risk of a further property downturn may be just around the corner.’

She added: ‘Much rides on the economy’s ability to sustain a return to growth, the impact of a rising level of unemployment, changes to credit conditions and possible rises in interest rates, all which may adversely impact on the affordability of deals.’

Nick Britton

Nick Britton

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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