22
November
2010
|
00:00
Europe/Amsterdam

Retail investment turnover grows in Q3

Warsaw, 2 November 2010 - European retail investment reached €7.3 billion in Q3 2010, a small quarterly increase of 4%. It has to be highlighted, however, that Q3 investment activity in both the retail sector and the overall market was markedly higher than in Q3 2009.

European retail investment reached €7.3 billion in Q3 2010, a small quarterly increase of 4%. It has to be highlighted, however, that Q3 investment activity in both the retail sector and the overall market was markedly higher than in Q3 2009.
90% of activity concentrates in only five markets
Q3 activity was heavily concentrated in only a handful of markets, with 90% of all activity in the top five countries. Historically more liquid markets, the UK and Germany continue to dominate, reporting a quarterly increase of 22% and 30% respectively, and accounting for 70% of the Q3 European total. The €1billion+ sale-and-leaseback of Tesco supermarkets was the most significant deal in UK, as well as the €110 million purchase of Stratford Shopping Centre by Catalyst Capital.
France, Poland and Spain were the second tier of markets to see robust activity levels, each reporting over €450 million worth of retail investment this quarter. Retail investment in France has actually fallen in Q3, whilst both the Polish and Spanish results bore a significant improvement on Q2. However, these increases were heavily influenced by a small number of deals: the sale of the last tranche of the BBVA bank branches in Spain and the Unibail-Rodamco acquisition of the Arkadia and Wilenska shopping centres in Poland.

Patrick O’Gorman, CB Richard Ellis Director of Capital Markets, CEE, commented: ‘Polish retail market is one of the most attractive sectors for European investors in today’s market. It offers the opportunity to benefit from Poland’s strong economic growth driving consumer spending into increasing rents. It also enables investor to practice true real estate asset management in order to maximise their investments.’