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Home/Leicestershire commercial property investment hits £629mln

Leicestershire commercial property investment hits £629mln

Innes England said investment in the industrial sector accounted for almost three-quarters of the figure, at £480 million, which was up nearly three times on the previous year

The commercial property market appears to be booming in Leicestershire after investment nearly doubled to £629 million last year, compared to 2020, according to data from by East Midlands property agency Innes England.

It said investment in the industrial sector accounted for almost three-quarters of the figure, at £480 million, which was up nearly three times on the previous year – thanks to a number of huge warehouse deals.

The figures, revealed in Innes England’s recent Market Insite report, suggested that commercial real estate investment across the wider East Midlands reached a record £2.29 billion in 2021.

In Leicester, the report highlighted, logistic deals included Amazon’s one million sq ft warehouse at Bardon, bought by Savills IM for £161 million; Aberdeen’s £103 million purchase of Amazon’s facility at Hinckley and Blackbrook’s £101 million acquisition of Skygate at East Midlands Gateway.

The £168 million Fosse Park extension added 140,000 sq ft of new retail and restaurant space, including Next, TK Maxx and H&M.

More than £17 million of the £45 million which Leicester City Council secured from the Levelling Up Fund will go towards the railway station’s regeneration plans.

The first unit of 75,000 sq ft in the final phase of the Leicester Distribution Park, on the Braunstone Frith Industrial Estate, has been taken by Piping Rock UK Limited.

The reopening of non-essential retail and the relaxation of restrictions on hospitality led to increased footfall, with the city at 93 per cent of pre-pandemic levels.

Investors piled a further £128.5 million into bed space across the student and build to rent sector.

Two shopping centres were sold – Fletcher Mall to property investors Cervidae and the Haymarket Centre to Leicester City Council.

In the industrial take-up market, Leicestershire recorded a modest drop of 5%, reflecting the development of schemes at Magna Park, Bardon, Hinckley and Ashby and others near the city.

Ben Robinson, head of Innes England’s investment consultancy, said: This is yet more evidence that industrial continues to go from strength to strength with finite stock continuing to harden yields.

The report said supply was the key factor in keeping the industrial market moving.

Peter Doleman, Innes England director of agency and development, said: Leicestershire is once again skewed by the big box market, where 2.5 million of the total 3.5 million sq ft of year end availability is recorded within buildings over 50,000 sq ft. Overall, supply remains broadly the same as 2020 at 3.2 million sq ft.

He said: The significant change within the Leicestershire market for this year will be the availability of a number of new speculative schemes, with Chancerygate now building out on site in Wigston, Canmoor on the Whittle Trading Estate in Whetstone, Jelson continuing phased development at Broughton Astley and Venture hopeful of planning consent to begin a new industrial development in Fleckney.