The report, ‘Business Outlook 2020: Focus on Business,’ reflects on the themes, activity and challenges of the previous year and forecasts what 2020 might bring across the regions in which Christie & Co operates, including the Midlands & East Anglia with offices in Birmingham, Nottingham and Ipswich.
Healthcare has remained a buoyant sector across the Midlands despite the ongoing struggles of prior years. We are seeing more consolidation across the region with smaller operators exiting the market and smaller groups looking to maximise operational efficiency. We are also seeing increasing levels of interest for closed opportunities suitable for alternative use.
Demand for good quality assets continued to outstrip supply as interest into the regions continues to gravitate outside of London. We anticipate cost pressures to continue to be a challenge for the businesses, as well as the increasing number of hotel rooms being constructed across the company having an impact on REVPar.
The pubs market across the country remains very active with plenty of M&A activity. However despite the demand, opportunities in the Midlands remain price-sensitive despite the attraction of the lower property values compared to the South. Sites with multiple revenue streams continue to be the most attractive for buyers, with coaching inns driving the most activity.
2019 was largely dominated by corporate transactions with supply of smaller individual or group assets failing to meet buyer demand. The first half of the year we found regional activity to be suppressed thanks to political uncertainty, however later in the year we found more committed buyers and sellers coming forward which we anticipate will continue into 2020.
Lee Howard, Regional Director – Midlands and & East Anglia at Christie & Co comments, “With the political and Brexit instability that shadowed 2019 now out of the way, we expect more businesses to move forward with their plans in 2020 and judging by the activity so far, it looks to be a positive year ahead for the Midlands and Anglia region.”
To read the full Midlands & East Anglia Business Outlook regional focus, click HERE.