Britain’s retail industry has received a welcome vote of confidence after a spike in investment in shopping centres this year.
According to property agent Savills, the total value of shopping centre deals in the first quarter of 2013 was £1.43bn, 194pc up on the £488m in the same period last year.
The value of deals in the first three months of 2013 is already more than half the total investment into the market in 2012, which totalled £2.7bn and included the Norwegian sovereign wealth fund buying 50pc of Meadowhall shopping centre in Sheffield for £750m.
The sharp increase in investment has been driven by UK property companies and pension funds, bucking the recent trend of overseas investors dominating the commercial property market.
The investments have been made despite flat sales on the high street and the collapse of a string of retailers, including HMV, Jessops, and Blockbuster.
Nick Hart, head of shopping centre investment at Savills, said: “The sales at Midsummer Place, Milton Keynes and Guildford demonstrate the appetite at the prime end of the market from Real Estate Investment Trusts and institutions and the levels at which they are prepared to pay to secure a prime asset.”
The major deals include FTSE 100 property company British Land buying Ealing Broadway shopping centre for £142m and rival Intu Properties paying £250m to acquire Midsummer Place in Milton Keynes.
In addition, F&C Reit paid £247m to buy a portfolio of centres from the Duke of Westminster’s property company Grosvenor .
According to Savills, the shopping centre transactions could reach £2bn by May as negotiations on other deals progress.
As well as an increase in deals, the first quarter of the year also saw the opening of Trinity Leeds, a new £350m development in the heart of Leeds by Land Securities.
The centre opened with more than 90pc of the units let, despite the uncertain economic conditions.
telegraph.co.uk
According to property agent Savills, the total value of shopping centre deals in the first quarter of 2013 was £1.43bn, 194pc up on the £488m in the same period last year.
The value of deals in the first three months of 2013 is already more than half the total investment into the market in 2012, which totalled £2.7bn and included the Norwegian sovereign wealth fund buying 50pc of Meadowhall shopping centre in Sheffield for £750m.
The sharp increase in investment has been driven by UK property companies and pension funds, bucking the recent trend of overseas investors dominating the commercial property market.
The investments have been made despite flat sales on the high street and the collapse of a string of retailers, including HMV, Jessops, and Blockbuster.
Nick Hart, head of shopping centre investment at Savills, said: “The sales at Midsummer Place, Milton Keynes and Guildford demonstrate the appetite at the prime end of the market from Real Estate Investment Trusts and institutions and the levels at which they are prepared to pay to secure a prime asset.”
The major deals include FTSE 100 property company British Land buying Ealing Broadway shopping centre for £142m and rival Intu Properties paying £250m to acquire Midsummer Place in Milton Keynes.
In addition, F&C Reit paid £247m to buy a portfolio of centres from the Duke of Westminster’s property company Grosvenor .
According to Savills, the shopping centre transactions could reach £2bn by May as negotiations on other deals progress.
As well as an increase in deals, the first quarter of the year also saw the opening of Trinity Leeds, a new £350m development in the heart of Leeds by Land Securities.
The centre opened with more than 90pc of the units let, despite the uncertain economic conditions.
telegraph.co.uk
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