Record high €3,500M investment in shopping centres in 2016

Record high €3,500M investment in shopping centres in 2016

During the first trimester of 2017, elevated investment activity continued, with more than 1,000 million euros involved in transactions concerning shopping centres.

Thanks to this level of investment, in 2016 the shopping centre segment, for the second year running, was the second most dynamic real estate market after offices. As regards the kind of buyer, institutional investment funds were the most active, with more than 52% of total volume,  and the socimis, with more than 38%. The remaining activity was by real estate companies and private investors.

In 2016, more than 35 investment transactions took place, seven of which involved portfolios. The main transaction involving a single asset took place in Barcelona, the purchase by Deutsche Bank of the shopping and entertainment centre Diagonal Mar, for just over 490 million euros. Also, the purchase of Metrovacesa by Merlin Properties also had a very significant impact on shopping centres, coming to a total of about 28% of the total amount.

During 2016 there was a slight containment of initial yield rates “due to the positive macroeconomic environment and the perception of a potential return to an upswing in rents,” according to Aguirre Newman. In the case of “gold” shopping centres, transactions closed in a punctual manner below 4%, a record low for yield in this market

The report from Aguirre Newman also points out that new supply incorporated into the 2016 market came to more than 273,000 m2 of Gross Lettable Area (GLA. The main shopping centres inaugurated in 2016 were Parque Nevada (Granada) and FAN Mallorca Shopping (Palma de Mallorca). Of the 273,000 m² of new GLA, 17% is the consequence of the expansion of existing centres.

 

 

 

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