Cushman & Wakefield - Retail Therapy 2015

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The UK remained the most dominant country in terms
of shopping centre acquisitions, with almost €8.2bn
invested in 2014, up from €6.3bn in 2013. Germany and
France also enjoyed a dynamic year with €4.5m and
€3.6m invested respectively.
The European retail sector is likely to continue to
benefit from stronger domestic and investor interest.
Recent research undertaken by Cushman & Wakefield
highlighted an increase in new capital earmarked for
retail investment. Of the single sector funds currently
being raised, close to half (45%) is focused on retail
assets. According to the last Cushman & Wakefield
European Fair Value Index analysis, the retail sector is
now much more attractive than the office sector, with
CEE and Southern European countries offering the
most underpriced markets.
The economic environment is expected to gain
momentum. Consumer spending and retail sales are
anticipated to grow at a moderate pace over the next
four years, which will help the retail sector maintain
its already strong appeal. We forecast that retail
investment will reach €52bn by the end of 2015, with
half of this invested in shopping centres.
The market will continue to be led by strong activity
in the three core markets - UK, Germany and France -
where listed companies are continuing to reshape their
retail and shopping centre portfolios. Additionally,
renewed interest from value added and opportunist
investors, which accounts for close to 46% of newly
raised capital, will lead to increasing investment
volumes in peripheral markets, assuming attractive
pricing continues.
European investment volume in retail sector, EURbn
Source : Cushman &Wakefield Research
Other retail formats Shopping Centre
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5 Retail Therapy | 2015
“319 shopping centres changed hands in
Europe in 2014, compared to an average
of 196 deals per year over the last
decade.”
EMEA