Cantillon: Northern property gets moving

Just as the commercial property market in the Republic (in Dublin at least) appears to have entered self-renewal, things seem to be ready to start moving north of the Border too.

The latest sign of this came with the launch on to the market of a newly-opened Tesco Extra store in Newry, Co Down.

In a clear test of the market, the supermarket is guiding £22.9 million and is being aimed firmly at institutional investors such as pension funds, the type of buyer that seeks a reliable return over a long period.

The outlet was developed by prominent Northern developer Turkington Holdings and its sale is being handled by CBRE, which this week said "demand continues to outstrip supply in the investment sector of the market".

In a research report it cited the sale of a retail park in north Down to a UK institution and the sale of the Scottish Mutual Building in Belfast’s Donegall Square South to the Hill family as evidence of increasing buoyancy.

Local sources argue that Northern Ireland has been attracting increasing attention from property buyers in Britain and further afield this year.

CBRE also paid slightly fawning tribute to Nama, the invisible landlord, which has allocated £15 million to complete two office buildings in Belfast’s Lanyon Place, home to the Waterfront Hall. Nama reckons that, when complete, the buildings will accommodate 1,750 people.

The move, says CBRE, has been “widely welcomed” in the absence of grade A office accommodation in the city.

In this vein Nama will be interested in another CBRE observation – that a number of UK law firms (just the right kind of office tenant) are believed to be “seriously considering” opening in the North.