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.’
