UK construction & real estate industry sees a drop of 40% in deal activity in Q2 2020

27 July 2020 (Last Updated July 27th, 2020 12:16)
UK construction & real estate industry sees a drop of 40% in deal activity in Q2 2020

The UK construction & real estate industry saw a drop of 40% in overall deal activity during Q2 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 39 deals worth $2.73bn were announced in Q2 2020, compared to the last four-quarter average of 65 deals.

M&A was the leading category in the quarter with 28 deals which accounted for 71.8% of all deals.

In second place was private equity with nine deals, followed by venture financing with two transactions, respectively accounting for 23.1% and 5.1% of overall deal activity in the country's construction & real estate industry during the quarter.

In terms of value of deals, M&A was the leading deal category in the UK construction & real estate industry with total deals worth $2.49bn, while private equity and venture financing deals totalled $239.95m and $0.81m, respectively.

The UK construction & real estate industry deals in Q2 2020: Top deals

The top five construction & real estate deals accounted for 83.05% of the overall value during Q2 2020.

The combined value of the top five construction & real estate deals stood at $2.27bn, against the overall value of $2.73bn recorded for the month.

The top five construction & real estate industry deals of Q2 2020 tracked by GlobalData were:

1) Top Family Group's $908.15m acquisition of Gold Flair

2) The $567.64m acquisition of United Progress Group by Yield Smart

3) Capital & Counties Properties’ $537.64m acquisition of Shaftesbury

4) The $131.08m private equity deal with RDI REIT by Starwood Capital Group Management

5) British Airways Pension Trustees and Supermarket Income REIT's asset transaction with The British LandPlc for $125.39m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term 'acquisition' refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.