BRIGHTER FUTURE ON THE CARDS FOR REGIONAL SHOPPING CENTRE INVESTMENT THIS YEAR?

“The current predictions on the national shopping centres market over this year by leading retail experts such as Colliers International are to be welcomed by all those investing in and operating  major and minor regional retail centres.  Particularly our shopping centres team at FI Real Estate Management  (FIREM) which specialises in asset and property management for major distressed portfolios which include some regional retail centres.

“The likelihood that a number of global players and private equity funds are  now seeking to invest in the secondary market is also good news while Sovereign Wealth Funds are expected to move out to the major regional shopping centres once their investment requirements in Central London are satisfied.

“Last year at FI REM we watched transactional volumes rising by 73 per cent  over 2012 as 70 centres changed hands at an overall price of £4.08 Billion  with sharper yields of 7.2 per cent at year end.  Good news for all of us.

“However, there were a number of loan book sales last year which the experts believe this year will continue and debt buyers will seek to offload shopping centre assets within portfolios leading to more of them going onto the market and swelling the choice and the stock.

“But, this can only bode well for those national and regional centres which have benefited from effective  asset and property  management ‘TLC’ during recession and where the three ‘R’s’ – recovery, rent collection and reduced costs – have  worked alongside a more innovative style of shopping centre management that actually enhanced the asset rather than saw it stagnate.

“ In the end, that course may well make the difference in asset value when any centre comes to market and see a far greater return for investors which we believe has to be the crucial management goal.”


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