|
contents | business | |||||||||
| Shopping centre supply increases as investors dominate Spanish market According to the latest retail report from Savills Spain, the investment market is set to improve in 2011, with circa €1bn shopping centres coming onto the market. Traditional funds, mainly internationals, will continue to dominate the field with Dutch, British and German funds accounting for 90% of transactions in 2010. The international real estate advisor suggests that the increase of vendors during 2011 will be led by banks disinvesting, in addition to local developers and traditional investors. Circa €700-800 m is expected to be transacted but with some investment opportunities totalling €100 m alone, a larger total could be achieved. Gross yields for prime centres should remain at 6.5% on average, with parks at 7% and secondary product at 7.5%. The research shows that prime new centres continue to lead occupancy rates. Las Arenas in Barcelona, Marineda City in La Coruna, Arambol in Palencia and Seville Este in Seville, have all opened with high occupancy levels, Seville Este and Arambol both achieved up to 100%. Savills says this small vacancy reflects a trend of recent arrivals or veterans re-entering the market and accessing top-end centres in prime areas due to a fall in rents over recent years. Retailers such as expanding DIY traders have a significant presence in new schemes including AKI, Bricor and Bricoking but also Decathlon and Sonae's brands, who are appearing in shopping centres alongside the low cost fashion brands of Zippy Merkal and Primark, as well as H&M and C&A. In terms of rents, new contracts in prime centres remain stable at €90 sqm/month, discounts are still obtainable with rent reviews occurring every three to six months to monitor sales changes in relation to discounts. Despite expansion plans, closing of retail units remain a reality in the market with Brico House and MIRO both closing stores. In the electronics sector, there has been a move towards control by a small number of companies and Media Markt is dominating. Development levels stand at 1999 figures with little more than 335,000 sq m (including extensions) opened in 2010, 35% less than 2009, and 416,000 sq m forecast to open in 2011. This compares to over one million sq m at the peak of the market in 2008. Retail warehouse parks continue to increase in importance, stock exceeds 1, 5m sq m across the country, which represents 11% of the total retail stock. write your comments about the article :: © 2011 Construction News :: home page |