Retail investment reached €970M up until June

Retail investment reached €970M up until June

On these results, Elaine Beachill, Head of Retail at Knight Frank, commented that «regardless of the current situation, we are witnessing a continuous demand for assets supported by the food and shopping centres’ segments and good opportunities in privileged locations».

The fact is that the pandemic decelerated operations between April and June, but transactions still reached 200 million euro, in particular operations involving supermarkets, as was the case of Mercadona’s sale of 27 supermarkets to American LCN for 180 million euro. The sale of 2 retail spaces in Madrid by Corpfin’s REITs for 14.6 million euro was another operation that stood out within the consultant’s latest Snapshot Retail.

The balance of the first 6 months of the year shows that the majority of investment went to shopping centres, representing 68%. It should be noted that the sale of intu Asturias and intu Puerto Venecia may explain these numbers. Operations involving supermarkets represented 23% of all investment during this period, high street retail represented 5% and retail parks 3%.

In terms of yields, Knight Frank assumed that «the shopping centre’s and retail park’s prime yields remained stable during this quarter, being set at 5% and 5.5% respectively, whereas the high street retail’s prime yields had a moderate growth reaching 3.5%». The note issued last week further informed that this yield behaviour in Spain is comparable to that of other cities such as Brussels, London, Berlin, Paris or Dublin.

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