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More shopping centre investment expected in 2011


A growing level of investment in shopping centres is expected in 2011 following a substantial market improvement in 2010, according to real estate advisory organisation Colliers International.

Increased investment demand and more cash-funded deals are set to be feature of the next 12 months, with Colliers predicting that most of the selling will be done by the banks as the next wave of receivership sales goes ahead.

André James, Head of National Investment at Colliers International, said: “As international capital moves towards the UK and the investment demand increases, coupled with a domestic demand for retail, the question everyone is asking is, who will be selling in 2011?

“We feel that this year the main sellers will be the banks.

“We have already seen a first wave of receivership sales and distressed borrowers pressurised by their banks to sell.

“This year banks will be looking to unwind their ‘bad loan’ books and with this increased stock supply, along with the growing investment demand, 2011 should see investment volumes exceeding those of 2010.”

The organisation showed the overall value of completed and exchanged transactions increased from £2.04 billion in 2009 to £3.51 billion in 2010 - a hike of 72 per cent.

However, Colliers said that rental growth remained negative at -3.4 per cent last year and is unlikely to return to positive growth until 2012.

Shopping centre development stalled between 2008 and 2010 as the recession took hold, but projects across the UK are now up and running again.

In August property group Land Securities began construction of the postponed Trinity Leeds shopping centre development again, marking the first major retail development to be restarted since before the financial crisis.

Richard Akers, Retail Managing Director at Land Securities, said at the time: “The quality of retailers that we have signed to the scheme supports our view that there is demand from retailers for the right property in the right location.”

Published on Friday 28 January by Editorial Assistant

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