UK shopping centre investment transactions reached close to £2.73bn (28 shopping centres) during the first half of 2014, substantially in excess of H1 2013 at £2.23bn. It has been a busy first half to the year fuelled by the weight of money targeting the sector. In Q2 2014, 15 shopping centres transacted totalling £1.42bn, similar to the £1.31bn (13 shopping centres) transacting in Q1 2014.
The most significant transaction in 2014, setting a new super prime benchmark and illustrating the depth of demand for stock, has been the sale of Lend Lease’s 30% stake in Bluewater Shopping Centre, Dartford. The asset was hotly contested for by the UK REITs, Global Shopping Centre Asset Managers and Sovereign Wealth Funds. Land Securities were successful and are reportedly paying £696m with the net initial yield (NIY) rumoured to be sub 4%. This transaction accounted for 49% of the total transaction volume in Q2.
Source : DTZ (Groupe UGL)