According to property consultant Cushman & Wakefield, shopping center stock has been relatively limited in Q2 2010, with yields for prime assets improving to 5.5% over the quarter. Yields for smaller and more secondary assets have remained relatively static with vacancy rates and falling rents continuing to suppress value.
Key deals in Q2 2010 include: the acquisition of NI Islington by Warburg-Henderson; the purchase of The Mall centers by Rockspring; Land Securities' purchase of the 02 Centre in Finchley; and Meyer Bergman's purchase of The Exchange, Ilford.
Just under £1,100 million of schemes are on the market including the Ewart properties (Hammersmith, Victoria and Fulham Broadway) with an asking price of £295 mln., 5.63%. A number of smaller schemes are on, or are coming to, the market. These include schemes in Ayr, St Austell and Dunstable.
Charlie Barke, Head of Retail Investment at Cushman & Wakefield said: "The first half of the year has seen significant yield improvement across the sector, fuelled by investment demand exceeding supply. Looking ahead, demand looks a little thinner and supply appears to be increasing. While prime stock will probably hold up reasonably well, we are concerned about a potential slip in secondary values as the year draws to an end."
Source: Cushman & Wakefield