JLL anticipates a £3bn market turnover in the UK shopping centre market in 2018
JLL is anticipating a £3bn market turnover in the UK shopping centre market in 2018, following suppressed turnover and muted investor sentiment last year with just 29 transactions worth £1.988bn taking place.
According to JLL, the likely downward pressure on valuations and recent capital gains tax changes together with the increased restrictions on refinancing will all be contributing factors that will accelerate the closing of the gap between vendor and purchaser pricing aspirations in the secondary shopping centre market.
Nick Hart, JLL’s UK head of shopping centre investment, said: “We expect to see much greater market activity in 2018 right across the piste, with a number of secondary centres and portfolios marketed. There is a great deal of raised domestic capital seeking high-quality assets and we believe that as we move through to March 2018 valuations, pricing will move to unlock the yield gap which has persisted for much of 2017.”