Central Europe, especially Poland, is fastest growth area for shopping centre deals
The total volume of continental European shopping centre deals hit a record €7.44bn last year, beating the €5.87bn total for previous record year 2003.
According to CB Richard Ellis (CBRE), the total value of UK shopping centre deals was €6.9bn in 2004, an increase on the 2003 total, but the continental European market has grown at a faster rate.
Central Europe had the lion’s share of the rise, with shopping centre deals increasing tenfold over the 2003 level. Apart from the UK, Poland was Europe’s most active market, with property worth €1.2bn traded. The Netherlands was the next largest market with total deals worth €1.1bn.
Italy and Spain, the most active markets in 2003, recorded a significant fall in transactions, following the trend in France, where most centres are now in the long-term ownership of specialist shopping centre investors.
December and January were extremely busy with more than €1.2bn changing hands (see table). This includes a UK debut in December for US REIT the Mills Corporation, with the €388m purchase of St Enoch Centre in Glasgow from Deka, advised by CBRE and Savills; and an Italian first for Credit Suisse Asset Management, advised by Jones Lang LaSalle, which bought the Le Cupole shopping centre in Milan for €90m.
The biggest deals in 2004 were Apollo Rida’s €750m purchase of the Metro portfolio and Fortis Vastgoed’s €450m forward commitment to buy five new centres under development in the Netherlands from Bouwfonds Ontwikkeling.
| Selected European retail deals, December 2004-January 2005 | ||||||
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ING Real Estate, buyer of the La Vache Noire centre in Paris, has been a prolific investor |
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Location |
Project |
Size m² |
€m |
Property type |
Buyer |
Vendor |
|
Glasgow |
St Enoch Centre |
60,385 + 55,000 land |
388 |
Shopping centre, supermarkets, galleries |
Mills Corporation |
Deka Immobilien |
|
Spain |
Hypermarkets |
180,000 |
210 |
Hypermarkets, |
Redevco |
Permira |
|
Paris |
La Vache Noire |
50,000 |
200 |
Shopping centre |
ING Real Estate |
AM |
|
Stockholm |
Jakobsberg |
67,000 |
97 |
Shopping centre, office, residential |
Blenheim Properties |
Doughty Hanson & Co Real Estate |
|
San Giuliano, Milan |
Le Cupole |
19,000 |
90 |
Shopping centre |
Credit Suise Asset Management |
Coopsette |
|
Austria (7 cities) |
n.a |
50,000 |
80 |
Single prime assets |
Redevco Central Europe |
MID Group |
|
Funchal, Madeira |
AM |
20,000 |
70 |
Shopping centre |
DB Real Estate Investment |
AM |
|
Busagno, Milan |
Il Globo |
10,000 |
44.6 |
Shopping centre |
Corio (bought 8,000m²) |
Polis Fondi Immobiliari di Banche Populari |
|
Trieste |
Il Giulia |
15,000 |
40 |
Shopping centre |
Aareal Italy Fund |
Private Italian investior |
|
Germany |
18 shopping centres |
n.a. |
31 |
Shopping centres |
Summit Real Estate |
n.a. |
|
Pau; Maurepas, Paris |
Le Palais, six units |
9,500;4,300 |
25.5 |
Shopping centre; retail park |
Redevco |
Sopic; Habitat & Commerce |
|
Parma |
Panorama |
9,000 |
19 |
Shopping centre |
LaSalle Investment Management |
VastNed Retail |
|
Malmö |
Ahlens House |
6.400 |
18.7 |
Retail unit |
Redevco Sweden |
n.a. |
|
Krakow |
Krakow Shopping Gallery |
6,780 |
10.6 |
Shopping centre |
GE Commercial Finance Gallery Real Estate/ Heitman Central Europe Property Partners |
Domy Towarowe Casino |
|
Source: EuroProperty |
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