No Brexit bounce for investors
Published: 07 October, 2016
UK shopping centre transactions plummet 90 per cent
According to new data from Cushman & Wakefield just £118m of shopping centre sales were concluded in the third quarter of 2016, down 90 per cent year-on-year.·And at £1.47bn, transaction values for the year to date are 53 per cent down on same period last year and the lowest since 2009. But the agent pointed out that £1.36bn of shopping centre deals under offer which bodes well for the final quarter of the year.
The three large investment transactions in Q3 2016 were: Manor Walks in Cramlington, sold by Hammerson to Arch Commercial Enterprise (Northumberland County Council) for £78m off a yield of 7 per cent; Lisnagelvin shopping centre in Londonderry, sold by British Land to Cordatus for £17.2m yielding 6.9 per cent and the Red Rose centre in Sutton Coldfield, sold by LaSalle IM to Birmingham City Council for £10.4m yielding 7.4 per cent.
Barry O’Donnell, head of UK shopping centre investment for Cushman & Wakefield, said: “The political and financial volatility following the EU referendum resulted in extremely low shopping centre investment volumes in the last quarter. However, investor confidence is improving with renewed overseas interest coupled with weak sterling and a softening in yields bridging what was a marked gap in seller and buyer expectations during the summer.
“There are a couple of chunky deals under offer which will, in my view deliver a much healthier transaction volume than the paltry Q3.”