Investment turnover slows
Published: 04 January, 2012
Shopping centre investment turnover slowed in the final quarter of 2011, according to Cushman & Wakefield
Shopping Centre investment sales are estimated by Cushman & Wakefield to have reached around £650m in the final quarter of 2011. This means Q4 2011 was the slowest final quarter in the past decade, with the exception of 2008.
Highlights for Q4 include CSC’s acquisition of Broadmarsh in Nottingham, Wereldhave’s acquisition of The Broadway Centre in Ealing and Blackstone/Catalyst’s acquisition of Houndshill in Blackpool.
The agent said investors have become concerned about the occupational market and about current pricing levels. These fears have led to a lack of confidence, particularly in the secondary market, and as a result yields have seen an outward shift.
As a result a number of schemes which failed to attract acceptable offers from the market have been formally withdrawn. These include schemes in Hastings, Enfield, Halifax and Eastleigh. Sales in Folkestone, Nuneaton and Middlesbrough are currently being brought together with interest in these centres reportedly being around the 9.0% net initial yield level.
And overall 2011 has not been a vintage year. Taking the one-off Trafford Centre deal from the statistics, the rest of the market will have produced a turnover of only just over £2.0bn this year, which is some way behind the 2010 figure of £3.5bn and behind all others years from the past decade with the exception of 2008.
