Revo, the organisation that represents the UK’s retail property sector, has launched the latest edition of its classification model for UK retail assets following an industry-wide consultation.
The new classification methodology is aimed at investors, owners and valuers. It aims to move away from the traditional ‘primary, secondary, tertiary’ terminology and create a consistent definition of UK retail assets according to their purpose, function, size, occupier mix and catchment.
The new classifications are divided into three core bands: destination and lifestyle, schemes of typically more than 750,000 sq ft; community, schemes of between 400,000-1m sq ft; and specialised purpose, schemes of between 150,000-500,000 sq ft.
Mark Williams, president, said: “This work is long overdue, and is essential in encouraging a proper understanding of the diversity, purpose and function of retail assets particularly as these assets evolve to be increasingly multi-use.
“We are encouraging further feedback on this classification model and our aim is, subject to further input, that a new methodology is adopted across the industry from 2019.”
Tim Leckie, executive director, equity research, listed property at JP Morgan, said: “We have been frustrated by the lack of differentiation between retail subsectors, and this new classification model is a step in the right direction in encouraging a better analysis of which retail property assets are performing, and which are not.”
Charlie Barke, head of shopping centre and high street at Knight Frank, added: “The rapid evolution of the retail market forces greater than ever scrutiny of our retail assets. This improvement in terminology should help investors, analysts, valuers and all assessors of our market to better understand the modern function of our centres.”
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