Investments in UK shopping centres stood at £2.16 billion in the first half of 2013, according to recent data by Savills. In total, this is a 35 per cent increase in the amount invested over the same period last year.
The Savills report highlights that 12 transactions were achieved in the second quarter of the year worth £743.85 million, bolstering the market further. A particular highlight of these deals was Hammerson and CPP's acquisition of a 33 per cent stake in Birmingham's The Bullring, which offers a net initial yield of 5.3 per cent for investors. Another huge deal was Ballymore's acquisition of Spitalfields Market in London for £105 million, with the deal being achieved in just three days. This investment is initially offering a 4.2 per cent yield, according to the Savills report.
Nick Hart, director of UK and European shopping centre investment for Savills, said: "There's double the number of acquirements this year than the same time last year. The sector is so specialist, and there are so many nuances and quirks. The opportunity at the moment is buying shopping centres in the dominant, stronger towns in the UK."
The shopping market centres on global trends, with there also being a major demand in the sector by UK REITs, property firms, and opportunity and sovereign funds. There are currently a further 21 shopping centres, worth £578.2 million, being negotiated within the UK and there are another 23 on the market for sale totalling £1.98 billion.
Savills estimates that another 20 shopping centres will hit the market by the end of 2013. They will be worth £530 million in total. Investors are now looking to shift their gaze towards shopping centres, especially if they have are established within the market.