A strong Q3 performance has meant that shopping centre investment volumes in 2014 have reached £4.01bn, which represents 90% of the total amount transacted in 2013, according to Strutt & Parker.

Strutt & Parker’s research found that shopping centre transactions totalled £1.26bn in Q3 2014, an increase of 15% from the corresponding quarter of 2013. 

The total transacted in Q3 2014 was marginally down on Q2 2014 by 7%; however the previous quarter was characterised by the sale of particularly sizable assets, including Land Securities acquisition of 30% of Bluewater for £656m, whereas the largest deal to take place in Q3 2014 was AXA’s acquisition of 50% of Cabot Circus in Bristol for £267m.  Strutt & Parker found that the number of centres sold increased 65% quarter on quarter.

Strutt & Parker’s research highlights that shopping centre investment has risen steadily, a slight blip in 2012 aside, since its nadir in 2008, and 2014 is expected to see the highest level of transactions since 2007.

Mike Rowlands, head of retail at Strutt & Parker said: “Having already reached 90% of last year’s transactional volumes the sector seems set to perform better in 2014 than it has done since 2007. Demand for shopping centres shows little signs of abating with increased competition and competitive bidding now common place for most assets that are brought to the market.”