A significant surge by investors for prime, good quality retail property
saw the sector post a 60 per cent year-on-year increase in capital during 2010, the latest figures from CB Richard Ellis (CBRE) have revealed.
Some EUR 36.2 billion was invested in European retail real estate
over the course of the year, with the sector clearly outperforming other asset classes.
Geographically speaking, activity was fairly concentrated on core markets, with the UK and Germany making up 63 per cent of total retail investment, the consultancy noted. France and the Netherlands were the next two most active countries.
John Welham, head of European retail investment at CBRE, said: "Over the last few months there has been notably more evidence of investors actively looking for value-add opportunities across many European locations."
He explained that the significant yield premiums on offer for investors and the shortage of new developments makes asset repositioning strategies particularly attractive in the retail sector.
Elsewhere, Stuart Fiertz, co-founder of Cheyne Capital Management, recently told Bloomberg that riskier assets in stable countries could present investors with the best opportunity to make substantial returns this year.
- Friday 01 April 2011