Shopping centre investment market picks up
Published: 22 June, 2011
According to Savills 19 shopping centres are currently under offer equating to £630m with a further 24, worth £1.2bn, on the market.
Savills' recent Shopping Centre and High Street bulletin reports that this increase in activity in the prime arena is creating a widening yield gap between super prime and secondary/tertiary stock.
Nick Hart, head of shopping centre investment at Savills, said: “The growing disparity between prime and secondary yields was first reported in Q4 2010 and as appetite for stock remains strong across the spectrum the shortage of grade A product coming to the market is causing prime yields to harden.
“We predict that we will continue to see downward pressure in prime and town centre dominant centres as investors continue to seek higher quality assets from an increasingly limited supply.”
