Shopping Centres
Q1 saw only 9 shopping centre transacted, totalling £772 million, 22%down on the same quarter last year. However, this figure was furtherskewed by the fact that two transactions (Grand Central, Birmingham anda 35% stake of Liverpool One) contributed to £635 million of this total.
The lack of transactional activity has been mirrored by a limited supply ofnew centres being brought to market, although more sizeable shoppingcentres that have now been prepared for sale include Southside,Wandsworth (£300m), Intu Bromley (£250m), and Gyle, Edinburgh(£195m).
The purchase of Grand Central by Hammerson / CPPIB at a 3.75% NIYwas the notable transaction of the quarter and reflects the continuingappetite for the primest assets. Demand for less dominant centres remainsmuch more patchy, with many centres remaining difficult to sell. Assets inand around London continue to prove popular.
In common with other sectors, the uncertainty and caution over theforthcoming Brexit vote is likely to further dampen investor sentiment in Q2.
View the full Retail Bulletin - Q1 2016.