The Investment Market
Overview
The Investment Market
Key Points
Investment into the UK retail market picked up in Q2, with £1.40bn invested over the period. This represented a 56.9% increase on Q1 2019. However, the total was materially below the long run quarterly average volume.
This brought the total volume for H1 to £2.29bn, a 33.3% decline compared to H1 2018.
The fairly negative sentiment across all consumer facing environments continues to impact investor appetite for retail assets across all levels of quality.
With the exception of prime foodstores, pricing across all other retail assets remains under pressure.
Foodstores saw a significant pick up in activity in Q2, with £547m invested, the highest quarterly volume since 2015.
Shopping centre investment also improved in Q2, although against a very weak comparative. We anticipate that Q3 should also see improved transactional levels, with a 50% stake in Intu Derby exchanging in April (£186.3m, 6.6% NIY), but not completing until Q3.
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