Factors influencing the yields of banking-hall investment: a qualitative study

Document Type

Conference Proceeding

Publication Date



British banking-halls, Portfolio building investment, Yields, Influencing factors


This research is related to British banking-halls as a class of real estate investment. Sale-and-leaseback has become an increasingly common approach during the last two decades for the holding of British banking-halls. One measure commonly used in making property investment decisions is the all risks yield (ARY). Investors and their advisors have a need for a predictive model which they can use for predicting those retail bank premises likely to achieve the highest ARY when assembling investment portfolios of such properties. A predictive model necessitates the identification of those factors significantly influencing the yields of British banking-halls. This research aims to identify the influencing factors which underpin the development of such predictive model. A literature review generated a hypothesis which was then tested by a qualitative study, based upon semi-structured interviews and a questionnaire, to establish the influencing factors. Expert interviews were held with the heads of those three major auction-houses dominating the market, whilst the questionnaire survey involved investment professionals from within the auction-houses. This triangulated qualitative study confirmed that the four factors influence yields and investors’ decision-making when purchasing retail banking premises were tenant banking company (brand names), regional location (super-regions), lot size (hammer price), and tenure (freehold, leasehold and others).

Source Publication

RICS Construction and Building Research Conference COBRA 2015, Jul, Sydney

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