In the first six months of 2013, North American investors made a strong showing in the European retail property market, according to CBRE. Sales were up 17 per cent over the same period last year, for a total of €15 billion.
North American investors were the most active cross-regional buyers of European retail properties in the first half of the year overall, with €1.6 billion net. The bulk of the acquisitions were made in Russia and the United Kingdom, although some acquisitions were made in France and Germany.
The Morgan Stanley purchase of the Metropolis Centre in Moscow was the largest retail deal in Europe, and it was twice the size as the second-largest retail transaction. This deal continued the trend of Americans being involved in record-breaking (in terms of lot size) transactions in Europe over the past 18 months.
According to Iryna Pylypchuk, Associate Director, EMEA Research, CBRE, shopping centres accounted for 75 per cent of North American retail acquisitions in the first six months of 2013. This is in contrast to Asian and Eastern European investors, who prefer to invest in high street retail.
John Welham, Head of European Retail Investment, CBRE, commented that going forward, the pricing for prime retail space is expected to remain stable and that there may be a possible further yield tightening in some markets.
The improved economic outlook in Europe, combined with a tight development pipeline, should result in stronger growth prospects, especially at the core end of the market. The fact that the euro zone has officially emerged from the recession is “leading more investors to pursue opportunities in the secondary sector.”
According to Valentin Gavrilov, Director, Research Department in CBRE, Russia, US companies generated about 23 per cent of the total investment volumes, which is more than all other countries did altogether.
Previous Post
Topshop Welcomes Back Kate Moss Clothing
