Shopping centre returns double in the UK, new figures show

By

Cajsa Lykke Carlson

Published
Mar 3, 2015

The UK shopping centre sector is seeing healthy growth, according to a new report from MSCI/Colliers International UK. The report reveals that both domestic and overseas companies targeted the sector, with a total investment of £6.09bn, a 43% year-on year increase.

The average total return in 2014 was 14%, more than double the 2013 performance, and prime yields for super-regional centres sharpened by 125 basis points from 5.25% to 4%. MSCI also said there are encouraging signs of rental growth in the sector.

James Findlater, Head of Shopping Centre Investment at Colliers International, comments: "The dramatic resurgence in the UK shopping centre investment market which started in 2013 accelerated in 2014 and brought with it new levels of activity, competition and sharpening yields."

"The common denominator among all buyers was that they were anticipating further recovery in the macro - economy leading to consumer spending growth and the strengthening story of retail."

MSCI's research analysed 227 shopping centre assets, valued at just below £14bn.

£1 = $1.54