EY-Parthenon reports that profit warnings issued by London-listed firms dipped 7% y/y in the Q1 2024 in another sign that “green shoots” are emerging in the UK economy.

Kantar reports that grocery inflation has fallen from 4.5% to 3.2% in April, the lowest rate since November 2021.

Hillcrest Private Equity Real Estate has bought the Morrisons supermarket in Hunslett, south Leeds at a net initial yield of c.7.5%.

Legal & General Investment Management (LGIM)’s managed fund has acquired the Tesco Extra supermarket in Poole from clients of abrdn for £46.1m - a net initial yield of 7.75%.

Legal & General Investment Management (LGIM) has completed its £122m purchase of the Project Aqua student portfolio from GSA - Global Student Accommodation. The guide price was £121.5m.

Plough Lane Retail Park in Wimbledon is being marketed at a £34m (5.5% net initial yield).

Bayes Business School reported that lending to UK commercial real estate dropped by a third last year to £32bn, the lowest new lending in a decade. The volume of problem loans is growing, with smaller lenders most exposed to valuation and interest cover breaches.

Two UK commercial mortgage-backed securitisations (Blackstone and Vantage) totalling £1.1bn have been launched in the space of a week, the first UK commercial mortgage bonds issued this year.

Nationwide Building Society reported that UK house prices fell 0.4% in April. That follows a 0.2% decline in March and trims the annual rate of growth to 0.6%. Rising mortgage rates are an issue, although activity levels are improving.

Knight Frank reports that investment in UK PBSA reached nearly £750m in Q1 2024, up significantly on the £148m in Q1 2023.

AEW has been granted planning permission for the redevelopment of the former Debenhams store in Bristol. The residential-led mixed-use development will include 502 BTR flats.

Mark Charlton – Real Estate Research Consultant at Waypoint