Investment in Spanish retail properties has doubled this year as international players have poured capital into the sector, according to research firm Real Capital Analytics (RCA).
Investment in Spanish retail properties has doubled this year as international players have poured capital into the sector, according to research firm Real Capital Analytics (RCA).
The international equity is focused on Grade A assets offering attractive income returns amid signs the economy may be bottoming out, the firm's analysis shows.
A total of €1.4 bn of retail-related property transactions was recorded in the year to 11 December, a 106% increase over 2012 market activity, according to data compiled by RCA. The number of retail deals above €7.5 mln rose to 24 compared to 10 for the same period last year.
With €703 mln of investments so far in the last three months of 2013, the year-end figure is already the largest value for retail real estate transactions in Spain since the third quarter of 2009.
Joseph Kelly, RCA's head of EMEA research, said: 'It's a sign of how far Spain has come that in the past 12 months an array of core and institutional investors have joined opportunity funds in picking up prime, defensive assets. Pricing in Spain offers attractive rental income returns to these investors compared with other core markets in Europe.'
