Shopping centre stock has been relatively limited in the second quarter of 2010, with yields for prime assets improving to 5.5% over the quarter. Yields for smaller and more secondary assets have remained relatively static with vacancy rates and falling rents continuing to suppress value, according to property consultant Cushman & Wakefield.
Shopping centre stock has been relatively limited in the second quarter of 2010, with yields for prime assets improving to 5.5% over the quarter. Yields for smaller and more secondary assets have remained relatively static with vacancy rates and falling rents continuing to suppress value, according to property consultant Cushman & Wakefield.
Key deals in Q2 2010 include the acquisition of NI Islington by Warburg-Henderson; the purchase of The Mall centres by Rockspring; Land Securities' purchase of the 02 Centre in Finchley; and Meyer Bergman's purchase of The Exchange, Ilford.
Just under £1.1 bn (EUR 1.3 bn) of schemes are on the market including the Ewart properties (Hammersmith, Victoria and Fulham Broadway) with an asking price of £295 mln, or 5.63%. A number of smaller schemes are on, or are coming to, the market. These include schemes in Ayr, St Austell and Dunstable.
Charlie Barke, head of Retail Investment at Cushman & Wakefield said: 'The first half of the year has seen significant yield improvement across the sector, fuelled by investment demand exceeding supply. Looking ahead, demand looks a little thinner and supply appears to be increasing. Whilst prime stock will probably hold up reasonably well, we are concerned about a potential slip in secondary values as the year draws to an end.'
