Transactional momentum building in shopping centre investment market

03 July 2017

In the second quarter of the year investment into shopping centres stood at £578.8 million transacted over 13 deals according to Savills. This is subdued compared to Q2 2016 in which investment into the sector stood at £737.2 million over 12 deals.

The firm notes transaction volumes for the first half of the year stand at £946.5 million compared to £1.508 billion in H1 2016.  This year has seen volumes bolstered by the sales of a small number of large lots, particularly the sale of the Stratford Centre for £141.5 million, The Exchange in Ilford for £78 million and Southside in Wandsworth for £150 million.

Over £1 billion of schemes have been brought to market in Q2 2017, dominated by the Bluewater stakes and the Liberty Centre in Romford. According to Savills there are currently circa £700 million of schemes under offer.

Mark Garmon-Jones, head of shopping centre investment at Savills, comments: “Despite the subdued levels of transactions in the second quarter we have started to see momentum building in recent weeks. The amount of stock already traded and also under offer leads us to believe that investment into shopping centres in 2017 will  be in excess of £3.5 billion, above the £3 billion seen last year.”

 
 

Key Contacts

Mark Garmon-Jones

Mark Garmon-Jones

Director
UK Investment

Savills Margaret Street

+44 (0) 20 7409 8950

 

Rebecca Allen

Rebecca Allen

PR Officer
Commerical Marketing & Press

Savills Margaret Street

+44 (0) 207 409 8937