Record prices paid for two Belfast investments

Hamilton Osborne King's Belfast office has recently achieved record prices for investment properties in the industrial and retail park sectors in two major deals. Industry sources say HOK is rumoured to have achieved £15 million sterling for the new Royal Mail sorting office, which is under construction at Mallusk, on the northern outskirts of Belfast. The centre was bought by a private Northern Ireland investor at a price reflecting an initial yield of 6.66 per cent, a record for an industrial investment in Northern Ireland.

HOK also achieved a price of £20 million for Damolly Retail Park in Newry on behalf of J Sainsbury Developments. The Park, which has a 70,000 sq ft B & Q store and a 20,000 sq ft MFI, was bought by British property company MEPC, which owns Castle Court shopping centre in Belfast. The yield on the Newry deal is 6.85 per cent. Rental levels are currently £11.50 per sq ft.

Robert Ditty, investments surveyor with HOK in Belfast, says "the current market is experiencing exceptional demand from local, national and Irish investors, all attempting to acquire what is clearly a limited stock of prime property. With further increases anticipated in property rentals, investors are attempting to capitalise on these forecasts; however, this increasing demand is fuelling capital appreciation, resulting in record yields being achieved in most sectors".

HOK says it anticipates further significant activity in the investment sector in the next six months and expects to close a number of major deals in the early autumn.