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European  Retail  Real Estate Investment Volumes

Jones Lang LaSalle report major deals closing. European Retail Real Estate investment amounts to €2.1 billion in Q4 to date. 2011 total volumes of €28bn are in sight, an uplift of 35% on 2010


London, 13th November 2011 - Jones Lang LaSalle report demand for prime retail real estate remained strong during the first half of Q4 2011. Against a backdrop of regional economic uncertainty, deals initiated earlier this year are completing. Investor appetite has however waned in some markets and a ‘wait and see’ mentality has been adopted by some investors. Geographically the Czech Republic and Poland saw significant volumes in Q3 and Russia continues to be a strong focus for investors.

Total investment volumes in the year to date now stand at €22 billion. With pending sales and deals in the pipeline, our forecast year end out turn of €28bn for 2011 is in sight. This would represent 35% uplift on 2010 volumes and would be significantly above 2009 (€12.3bn).

Jeremy Eddy, Head of EMEA Retail Capital Markets adds, “so far in Q4 we have seen that there is still healthy, albeit selective appetite from investors. More attractive economic and retail sales growth prospects and pricing is driving investor appetite towards Czech Republic, Poland and now Russia, but transactions still continue across Europe for the right product. We have seen some major deals in Germany and France. Other markets which will remain a focus for investors include the Nordics, in particular Sweden and Finland. The depth of equity remains and will continue to fuel demand for high quality retail assets.”

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Notes to Editors

This research considers all investment sales of shopping centres, retail warehouses and factory outlet centres in Europe.  It excludes the high street and any investment deal less than US$5 million in value.