Some 101 British shopping centers changed hands in 70 deals last year, with $8.8 billion exchanged, according to DTZ. This marked the highest level of transactions since before the recession. The 10-year average of shopping center transaction volumes in the country is $6.28 billion, the firm reports. Asian investors drove a good portion of the activity, representing $1.4 billion, or 17 percent of the acquisitions in 2014, up from zero in 2013. Bristol’s Cabot Circus (below), Intu Uxbridge and Livingston’s The Centre were among the retail properties purchased with Asian money last year.
Meanwhile, the return on investment on U.K. shopping centers more than doubled last year over 2013, providing total returns of 14 percent, according to investment advisory firm MSCI. Following six years of rental deterioration in the U.K. shopping center sector, the firm’s research showed a modest return to rental growth of 0.1 percent in 2014.
These trends point toward an even busier market this year. “Demand will outstrip supply in 2015, particularly for quality assets,” said Barry O’Donnell, DTZ’s head of shopping center and outlet investment. “We anticipate an active year ahead.”
