Germany ranks number one as a core destination for shopping centre investment, followed closely by the UK, France, Norway and Sweden, according to Savills latest European shopping centre investment benchmark.
Germany ranks number one as a core destination for shopping centre investment, followed closely by the UK, France, Norway and Sweden, according to Savills latest European shopping centre investment benchmark.
Strong economic fundamentals, consumer spending and low unemployment have all helped these five countries stay on top of Savills ranking for two consecutive years.
The research, which analyses 16 markets, finds that a renewed focus on prime assets in 2013 has caused average shopping centre yields to move in by 15 basis points between Q3 2012 and Q3 2013 to stand at 6.3%.
In contrast to last year’s report, the prime yield gap between core and peripheral countries has stabilised as indicated by a yield gap that has held from 151 bps in Q3 2012 compared to 150 in Q3 this year. Savills predicts from next year the prime yield gap between core and non-core countries will start slowly narrowing.
Nick Hart, head of UK and European shopping centre investment at Savills, commented: 'Since the start of the economic crisis there has been a clear flight to core dominant retail markets and pricing has increased in some cases 100 basis points in the last nine months.
'We are also seeing a huge weight of money enter the sector across the purchaser spectrum and in 2014 we predict we will see investors continue to look to core countries, although some of these may consider secondary schemes in those markets. The more risk embracing investor will seek out opportunities in non-core markets.'
Here's a link to more news from Mapic 2013
