While others are busy swimming downstream, bunkering down in the south east of the country Development Securities seems to be buying in the regions.The group delivered its interims from 30 June 2011 to date, this morning. In them it said it had "deployed equity into the right buying opportunities" a rather wordy way of saying it thinks that Ilford, Manchester and Staffordshire are going somewhere (there's a full list of what it has bought at the bottom of this post). It is a mixed bag of retail, offices and student accommodation and most seem to have some opportunity to refurbish or redevelop at least part of the property.
Dev Sec have long said they'd be doing some bottom fishing to take advantage of the market but it has always been viewed as a London-centric firm. It is most notably known for its Paddington Central development. To be buying in the regions when everyone else is shying away in favour of safe London buys is an interesting counter cyclical step - but could it prove to ultimately be an incredibly smart step?
Valentines House, Ilford - acquired an office property for £5.3 million yielding c.6.0% which has interesting options for a food store anchored, mixed-use scheme
Lichfield, Staffordshire - invested £2.4 million in a 50:50 partnership to develop a 395,000 sq ft Mixed-use complex with the new shopping centre, Friarsgate, at its core
Chorlton Cross, Manchester - acquired the 2.5 acre Chorlton Cross Shopping Centre in the affluent Manchester suburb of Chorlton-cum-Hardy, for £9 million yielding an initial 8.4% and offering a medium-term opportunity for extensive refurbishment or redevelopment
Ladybarn House, Manchester - acquired a 120-bed hall of residence adjacent to the main residential campus for the University of Manchester for £6.4 million, which is currently yielding 6.3%
Related EGi stories (£)
Related blog posts (free)
Picture by Roy Lathwell on Flickr
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