This market commentary published by Savills made for an enjoyable read. The report summarises what we saw happen in the sector during 2018 and echoes the outlook many of our clients hold for 2019 - one which is realistic (taking account of the general re-pricing in the sector), but also quite positive in that opportunities are expected (especially towards the end of the year). A few points to summarise for you from the report:
- investors will be continuing (rightly) to look at covenant strength and what rent tenants can afford
- prime yields are expected to stabilise towards end of 2019 as right pricing is reached
- more stock expected as loans are pushed to LTV breaches and banks will likely be unwilling to refinance debt
- the below quote: