Investment market surges in 2011
Published: 21 December, 2011
Knight Frank reports increased shopping centre investment turnover in 2011
Knight Frank estimates that 2011 will witness up to £3.75bn of UK shopping centre deals. This should be viewed very positively especially in view of the current negative sentiment towards real estate investment generally and retailing specifically.
Whilst the stats are dominated by the £1.6bn sale of the Trafford Centre they are better than 2010’s £3.5bn and significantly better than 2009’s £1.5bn and 2008’s £2bn.
Knight Frank calculates that there were 52 transactions in 2011, 15 per cent more than the previous year.
Investment partner Bruce Nutman said: “As the yields soften, we remain upbeat about the prospects for 2012. There will be more distress on the high street and Christmas trading will be tough but we remain sufficiently optimistic that the better retailing companies will survive the tough trading conditions.
“We do not anticipate significant availability of debt in the short term but there is considerable equity in the market place for real estate and shopping centres remain in demand.
“We sense that there will be more stock available next year. The banks and borrowers will continue to exit their positions and the larger funds and Reits will also sell selectively in order to re-balance their portfolios.”
