The mature markets of Western Europe are back in favour with retail developers and investors, but prime product is thin on the ground, according to research by PropertyEU.
The mature markets of Western Europe are back in favour with retail developers and investors, but prime product is thin on the ground, according to research by PropertyEU.
Germany in particular offers strong redevelopment and refurbishment potential, while the Nordics are also drawing interest from investors.
A year ago, Jones Lang LaSalle prophetically proclaimed that the more mature and larger Western European economies would remain a key target for retail investors in 2009. As a percentage of total retail investments so far this year, the Big Five - France, Germany, Italy, Spain and the UK - accounted for EUR 6.7bn, approximately 83% of the total volume, figures from JLL show. The figure covers shopping centres, retail warehouses and factory outlet centres in the UK and Continental Europe, but excludes high streets and any investment deal valued at less than EUR 5 mln.
The trend is set to persist in the year ahead, claims Richard Bloxam, head of JLL's pan-European retail capital markets team. 'The focus is on finding and sourcing opportunities in mature markets. The emphasis is on consolidation rather than taking new risks. In the medium term, the retail game is not going to be exciting and dynamic. But it has never really been a roller coaster ride.'
The rest of the article appears in the November edition of PropertyEU magazine. Click on the link below to subscribe.
