Shopping Centre Investment Bounces Back
It is encouraging to see the improved consumer and general economic backdrop feeding through to investor confidence in the shopping centre/retail space. The significant increase in transaction volumes in this sector signals the return to a healthy, well functioning market.
We predict the continued strengthening of the UK economy coupled with investor sentiment favouring UK assets over those in Europe to be two key drivers of yield compression for shopping centres and retail in the medium-term. We are bullish on the rebound of the regional market, particularly in key cities that have to-date participated well in the consumer led economic recovery.