However, the average deal size during the year was up on 2005 at £68m, with 21 deals at or above £100m and 26 per cent of transactions at an average initial yield of less than 5 per cent. Property companies were the biggest buyers and sellers of shopping centres in 2006, with private investors being the biggest net investors in the sector.

Nick Hart, head of shopping centre investment, said: "We predict that 2007 will continue with strong demand for shopping centre assets. We think that strong bidding will continue at the prime end, albeit with fewer parties bidding."

And he warned: "There could be pressure on some of the more secondary assets where aggressive prices have been paid, but with further retail development planned for some of these towns, rental growth prospects could be dampened."

In one of the last deals of the year, Investream, advised by Savills, sold its Cornmill Shopping Centre in Darlington to Moorfield Real Estate Fund for £84.5m.

The 221,066 sq ft shopping centre is the dominant retail scheme in Darlington and is anchored by a new 38,475 sq ft Primark store. Other tenants include New Look, Bon Marche and TK Maxx. The shopping centre has an adjoining 402-space multi-storey car park.

DTZ acted for Moorfield Real Estate Fund.

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