Shopping Centre Transactions Reach £4.3 billion in 2015

Posted on 8 January, 2016 by Chris Grigorovsky

It was a successful year for UK shopping centres in 2015, which saw the investment market stay strong throughout, with a total of £4.3 billion traded over 86 assets. This is 8 per cent higher than the long term average of £3.98 billion, a report from Savills says.

UK Shopping Centre Transactions Reach Record £4.3 billion in 2015

One of the biggest contributors, was the sale of Festival Place in Basingstoke which was £290 million and Newcastle’s Monument Mall which went for £80 million in Q4 2015. The final quarter alone had £1.10 billion of shopping centre transactions.

There are currently 13 assets under offer and a further 19 in the marketing, which total £1 billion and £1.64 billion respectively.

Also reported was the growing investor preference in regards to higher quality prime and town centre dominant centres. This saw the average net initial yields harden to 7.12% last year from 2014’s 7.65%.

According to Savills, property companies were the most active investor type in 2015, acquiring a total of 34 shopping centres for £1.4 billion, which is a 36% increase from 2014’s £1.3 billion. While institutional investors acquired 17 centres for £1.2 billion in 2015, a 26% decrease from the year before which totalled £1.86 billion.

Head of UK & European shopping centre investment at Savills, Nick Hart, says: “After the general election and economic volatility in the Far East, the second half of 2015 saw a slow down in investment activity and appetite which led to only £1.1 billion being traded in the final quarter.

“With retailers trading profitability, tenant demand is continuing to improve and still large amounts of global equity for investors to utilise, we expect a more normalised strength and depth of demand for shopping centres across the purchaser spectrum.

“We are anticipating transaction volumes will reach a healthy £4 billion to £5 billion in 2016.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme

America, Amazon Wants You!

UK Firms Battle To Survive

COVID-19 Grounds EasyJet Fleet

ECB Emergency Fight Back Aganist Covid-19

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market