The volume of retail transactions in continental Europe in the third quarter of 2007 stood at EUR 7 bn, according to figures from Jones Lang LaSalle released at MAPIC. Although the third-quarter figure was slightly down from the previous three month period, Jones Lang LaSalle noted it still represents the third-largest transaction volume ever recorded. Investment volumes in the first nine months of 2007 rose more than 20% to EUR 19.2 bn.
The volume of retail transactions in continental Europe in the third quarter of 2007 stood at EUR 7 bn, according to figures from Jones Lang LaSalle released at MAPIC. Although the third-quarter figure was slightly down from the previous three month period, Jones Lang LaSalle noted it still represents the third-largest transaction volume ever recorded. Investment volumes in the first nine months of 2007 rose more than 20% to EUR 19.2 bn.
'The market in the first half of the year was characterised by a broad deal base attractive to both equity and leveraged buyers and right across the continent geographically,’ said Richard Bloxom, director at Jones Lang LaSalle's European Retail Capital Markets team. 'While transaction volumes were high in quarter three the number of transactions fell slightly as the credit crunch led some investors to take more time to consider and close deals.'
Jeremy Eddy, also a director at the European Retail Capital Markets team said: 'The decreased availability of debt and re-priced lending terms will have an effect through the last quarter of 2007 with reduced volumes. We are experiencing reduced buyer numbers on sales, however pricing remains stable for prime product.' He said 2008 is expected to be characterised by corporate activity and pricing stabilisation as a result of a greater balance between product availability and investor demand.
Among Continental European markets, Germany remains the prime area of investment activity, with a total volume of EUR 6.3 bn in the first nine months of 2007. While Germany accounted for one-third of the investment pie, France followed in second place with 9% and Russia in third place with 8.2%. Central and Eastern Europe is increasingly important for investors, as they head east looking for products and yield margins. Poland, Romania and the Czech Republic have been key targets. Nordic countries have also been popular, with Sweden and Finland together representing 12% of total investment volume in the first three quarters.
