UK mall stock increasing in subdued market: C&W

More than 20 shopping centre schemes, with a combined capital value of around £1.5 bn (EUR 1.7 bn) are being openly marketed in the UK, according to property adviser Cushman & Wakefield.

The largest schemes include The Kingfisher Centre in Redditch, where C&W is joint agent for SWIP, and Castle Court in Belfast. These are likely to attract a wide range of interest from REITs, property companies and opportunity funds, C&W said.

There are also a number of schemes on the market with a capital value between £80-100 mln. They include: Houndshill in Blackpool; The Mall in Middlesbrough and The Grange/The Pyramids in Birkenhead. Schemes in the £35-70 mln range, include The Meadows in Chelmsford and Priory Meadow in Hastings.

However, the investment market has been subdued in the second quarter of 2011 with nine transactions totalling £479 mln. This represents a large drop from the previous quarter in which just over £2 bn was transacted in 13 deals, most of which were agreed at the end of 2010.

The largest shopping centre to change hands in Q2 was The King’s Mall in Hammersmith, bought by Matterhorn from St Martin’s. Other transactions include Invista acquiring Wellgate in Dundee - where C&W acted for the vendor, Prupim - and Orchard Street acquiring schemes in Lichfield and Chorley.