Germany, the UK, France, Norway and Sweden have emerged as the top five core destinations for shopping centre investment, according to the latest European shopping centre investment report from Savills.
Germany, the UK, France, Norway and Sweden have emerged as the top five core destinations for shopping centre investment, according to the latest European shopping centre investment report from Savills.
According to the report, the top five opportunistic shopping centre investment locations are Romania, Poland, Hungary, the Czech Republic and Austria.
Lydia Brissy, European Research director at Savills, said: 'The catchment area for shopping centre investors is gently widening. Countries with proven consumer spending resilience or prospects remain the preferred destinations although trophy assets located elsewhere are becoming popular.'
Average prime European shopping centre yield across the countries analysed stands at 6.43%, according to the report. Institutional investors have been the key purchasers of European shopping centre investments. However public funds, the predominant sellers last year, are also starting to buy again.
Danny Kinnoch, European retail director at Savills, added: 'Prime shopping centre interest remains strong with sovereign wealth funds, North American pension funds and European listed property companies all actively seeking such product. In peripheral European countries we expect some of these investors to take advantage of pricing contraction by buying rarely available, best in class centres. In addition, opportunistic investors are weighing up deals in these peripheral countries but asking prices need to allow them to achieve their risk-adjusted return requirements.'
