BCSC Asset Pricing Guide released
Published: 05 May, 2011
BCSC is calling for greater transparency and consistency in shopping centre investment advice in order to boost confidence in the sector as a long-term, sustainable investment class.
BCSC’s Shopping Centre Asset Pricing Guide, published today (5 May) has been developed in response to research it conducted last year on the magnitude of the issues facing secondary shopping centres in the UK. One of the key areas for action was the need for greater consistency and transparency in the valuation of shopping centres to capture the structural changes taking place in the industry, such as shorter lease lengths and the increase in turnover based rents.
As well as the shifting nature of retailer and landlord relations, consumer shopping habits are evolving as a result of advances in the capability and coverage of the internet and social media. These changes require the creation of attractive retail destinations that respond to consumer demand, along with asset management strategies that deliver strong returns for investors.
BCSC’s Guide takes into account the potential impact of these structural changes on an individual asset’s value for the first time. It is aimed at all parties involved in lending or investment in the shopping centre market and is intended as a series of guidelines to complement existing valuation methodology set out by RICS. The document highlights a number of key actions across ten different areas.
Richard Akers, BCSC President, said: “We have embarked on this exercise to encourage a more detailed and consistent analysis of the factors affecting shopping centre valuation, and the reporting of them in such a way that is helpful to companies that invest in, or lend to our sector. We hope that in doing so we will ensure that proactive asset management is given greater recognition in the final analysis of value - ultimately benefitting those who recognise and support the sustainable growth of our sector and its contribution to local communities.”
