24. Juli 2012 
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Eight shopping centres with a total value of £385m were transacted during Q2
A notable trend in Q2 has been the withdrawal of unsold shopping centres with little or no replacement stock. A ‘quiet’ summer is anticipated with potentially heightened activity from September due to the considerable weight of money focused upon the shopping centre sector, says Knight Frank.
Q2 was a modest quarter for the UK shopping centre investment market. According to Knight Frank’s latest UK Shopping Centre Investment report, just eight shopping centres with a total value of £385m were transacted during Q2 2012. This marks a decrease of 8% on a quarterly basis and 6% on a yearly basis.
The headline deal in Q2 was Capital & Regional’s £130m acquisition of the Kingfisher Centre in Redditch. Other key transactions included the sale of The Mall in Norwich and Broadwalk shopping centre in Edgware; both lot sizes were over £60m and had net initial yields of 7.75% and 6.00% respectively.
The available assets at the end of Q2 are predominantly secondary shopping centres and relatively small lot sizes, with the notable exception of Meadowhall and The Lanes Shopping Centre in Carlisle which we understand is under offer at around £65m.
Knight Frank pointed out that investors continue to factor in the Eurozone crisis, concerns over the economy and the general health of the retail sector to their pricing.
Bruce Nutman, Partner, head of retail investment at Knight Frank said, “Several factors have contributed to the drop in investment volume including a lack of prime stock, a gap in the pricing expectations of sellers and buyers on secondary assets, as well as the continuing challenge of obtaining finance. Encouragingly, prime shopping centres are still seeing good demand whilst supply remains insufficient’.
Q2 was a modest quarter for the UK shopping centre investment market. According to Knight Frank’s latest UK Shopping Centre Investment report, just eight shopping centres with a total value of £385m were transacted during Q2 2012. This marks a decrease of 8% on a quarterly basis and 6% on a yearly basis.
| Q2 shopping centres sold | |||||||
| Shopping centre | Purchaser | Vendor | Price (£m) | NIY % | |||
| Kingfisher Centre, Redditch | Capital & Regional | Scottish Widows | 130.0 | 8.00 | |||
| The Mall, Norwich | InfraRed Capital Partners | The Mall/Aviva | 77.4 | 7.75 | |||
| Broadwalk Shopping Centre, Edgware | Scottish Widows | Carlyle Properties | 68.0 | 6.00 | |||
| The Core Shopping Centre, Leeds | Threadneedle Property | Receiver | 38.0 | 9.00 | |||
| White River Place, St Austell | Ellandi Property Limited | Lone Star | 25.0 | N/A | |||
| Mercat Shopping Centre, Kirkcaldy | Lasalle/Mars Pension Fund | Receiver | 19.8 | 8.40 | |||
| Captain Cook Shopping Centre, Middlesbrough | Lasalle/Mars Pension Fund | Aviva | 18.9 | 10.22 | |||
The headline deal in Q2 was Capital & Regional’s £130m acquisition of the Kingfisher Centre in Redditch. Other key transactions included the sale of The Mall in Norwich and Broadwalk shopping centre in Edgware; both lot sizes were over £60m and had net initial yields of 7.75% and 6.00% respectively.
The available assets at the end of Q2 are predominantly secondary shopping centres and relatively small lot sizes, with the notable exception of Meadowhall and The Lanes Shopping Centre in Carlisle which we understand is under offer at around £65m.
Knight Frank pointed out that investors continue to factor in the Eurozone crisis, concerns over the economy and the general health of the retail sector to their pricing.
Bruce Nutman, Partner, head of retail investment at Knight Frank said, “Several factors have contributed to the drop in investment volume including a lack of prime stock, a gap in the pricing expectations of sellers and buyers on secondary assets, as well as the continuing challenge of obtaining finance. Encouragingly, prime shopping centres are still seeing good demand whilst supply remains insufficient’.
