High levels of shopping centre investment activity are expected in western continental Europe, according to new research by CB Richard Ellis and The Retail Consulting Group. In France last year nine shopping interests were traded with a capital value of €500m, reflecting an average prime yield of 6%. Meanwhile, in Spain eight interests were traded with a total value of €484m, which reflected a prime yield of 6.5%.
The year 2000 started with Rodamco’s €174m Piren portfolio acquisition, that included 400,000m2 of shopping centres, mostly in Sweden but also in Denmark. Carrefour sold six shopping centres in Italy and Spain to the Pradera Retail Fund, with options to acquire a further seven.
A second Carrefour deal has been agreed but is not yet completed and the figures are not included in CB RE’s and Retail Consulting Group’s figures. This deal involves 170 shopping centres in France (92), Spain (70) and others in Portugal, Greece and the Czech Republic. It establishes the purchaser Klépierre as Europe’s largest owner of shopping centres by number. The development pipeline is high by western European standards; most projects are sold before completion and the experienced investors like Rodamco and ING have turned to development to obtain improved returns.
