Investment in shopping centres across the UK, as well as shops in central London, has jumped to levels that haven’t been seen since before 2008’s financial crisis.
According to research by property agent Savills, an estimated £6.8bn worth of shopping centres were bought during 2014, up 43% compared to 2013.
The amount spent on retail assets in central London hit new heights of £2.5bn and the interest sparked by international brands is expected to drive rents on Oxford Street over £1,000 per sq ft for the first time during the course of 2015.
It is hoped that rent will clear £1,000 per sq ft on Oxford Street.
Anthony Selwyn, Head of Central London Retail at Savills, commented:
“All credit to the influence of key department stores who, through active asset management, have continued to boost the attraction of this area and subsequently drawn in new and existing brands to the area.”
The investment was led by domestic and international buyers, of which Nick Hart, Director of Shopping Centre Investment at Savills, said:
“One of the defining reasons why we believe the market will continue to surge forward in the short to medium term is because we are in unprecedented times from an investor appetite perspective. We have never witnessed a market where all sectors of the investor spectrum are seeking to deploy equity at the same point alongside the debt markets. This is primarily because the sovereign wealth funds and global institutions hadn’t started to deploy equity around the globe until relatively recently.”