19:07 European retail property investment reaches €4.6 billion in Q1 2012 | |
| Investment turnover in the European retail property market slowed in the
first quarter of 2012 (Q1 2012) with few large transactions taking
place. However, investor sentiment remains buoyant and activity is
expected increase from Q2 2012 onwards. The retail property investment market in Europe totalled €4.6 billion in Q1 2012, which represents a 64 percent fall in activity compared with the last quarter of 2011 and less than a half of the quarterly average from the last two years of €9.4 billion. Activity slowed across all geographies, bringing the retail share of overall European commercial property investment to fewer than 20 percent. While investor sentiment remains particularly buoyant in Germany, activity in Q1 2012 still fell to €1.35 billion, well below the last two year quarterly average of €2.4 billion. Notably, there was very little (just under €200 million) retail investment in Central and Eastern Europe (CEE) – with lack of finance and suitable product thought to contribute to the subdued transaction level. Banks and other lenders are potential source of new product. In the light of further deterioration in lending sentiment and new banking regulations, lenders are becoming more active in their deleveraging strategies. There is more product coming onto the market – in most cases through ‘encouraged by the bank’ sales, carried out by the original borrower. This offers significant opportunity to access product, especially with respect to value-add and more secondary assets that offer higher return potential. The fall in retail investment took place despite the strong growth in investor demand for the sector over the last couple of years and similar projections going forward. According to the latest CBRE and INREV investor intentions surveys retail features as a leading investor choice for 2012 and we expect this to be reflected in investment activity levels from Q2 2012 onwards. Source: europaproperty.com | |
|
| |