Retail property investment in Europe rose by 29% in Q2 2012 to EUR 3.9 bn compared to the first half of this year, but was down 54% over the first half compared to the year-earlier period, according to preliminary figures from Jones Lang Lasalle. At EUR 7 bn over the first six months compared to EUR 15.3 bn a year ago, the first-half figure is also significantly below the H1 five-year average of EUR 10.3 bn.
Retail property investment in Europe rose by 29% in Q2 2012 to EUR 3.9 bn compared to the first half of this year, but was down 54% over the first half compared to the year-earlier period, according to preliminary figures from Jones Lang Lasalle. At EUR 7 bn over the first six months compared to EUR 15.3 bn a year ago, the first-half figure is also significantly below the H1 five-year average of EUR 10.3 bn.
As in Q1, the large, liquid markets of Germany and the UK generated the bulk of investment volume with Germany accounting for almost half of all deals over EUR 100 mln, including the purchase of the Europa Galeria in Saarbrücken by Union Investment from Credit Suisse Euroreal, for EUR 173.5 mln and Unibail-Rodamco’s EUR 190 mln acquisition of a 50% stake in Ruhr Park in Bochum.
Earlier this year, Unibail-Rodamco also acquired a majority stake in Perella Weinberg’s joint venture holding in MFI, Germany’s second largest shopping centre developer.
For the second half of the year, JLL expects more activity, particularly in Germany, the UK and Poland. However, the firm has downwardly adjusted its full-year estimate and does not expect investment volume to exceed EUR 20 bn. In 2011, investors forked out EUR 31.6 bn on retail transactions in Europe.
