European retail investment volumes are set to exceed €30 bn in 2014 following a strong first half which saw investment rise 44% to €16.4 bn compared with the year-earlier period, according to figures from JLL.
European retail investment volumes are set to exceed €30 bn in 2014 following a strong first half which saw investment rise 44% to €16.4 bn compared with the year-earlier period, according to figures from JLL.
Volumes in the second quarter were up 86% at €9.6 bn, boosted by landmark transactions in London and Paris, JLL said.
The largest transaction was the €805 mln purchase of a 30% stake in the Bluewater mall in Kent, UK, by Land Securities, plus €49 mln for the full asset management rights and 110 acres of surrounding land, valuing the scheme at around €2.7 bn overall. In Paris a consortium of private investors assembled around Fonciere Apsys acquired the Beaugrenelle Shopping Center for a price in the region of €700 mln.
‘The outlook for this kind of dominant product across Europe remains positive, something that has been recognised in the investment market with around 20 schemes of over €400 mln trading across Europe (outright or stakes) since the financial crisis,’ JLL said.
Geographically, assets within the large, liquid markets of the UK, Germany and France remain in demand, JLL said. Together, these three markets together accounted for over 70% of total volumes in the second quarter.
In addition, the broadening of the geographic investment focus seen in the last few quarters is continuing. In particular, signs of economic recovery and improving consumer confidence in Italy and Spain have sparked significant investor interest and activity, with some investors increasingly seeking value outside of the core markets.
Looking forward, JLL expects European volumes to exceed €30 bn for the full year and potentially to hit the largest volume since 2011.