UK Shopping Malls made Drastic Investments in Q1 of 2014

This time, investments and transactions done in different shopping centers of United Kingdom reached to about £1.31bn. This comprises of 13 different shopping malls during the beginning of 2014, as per the reports released from DTZ research group. The entire value obtained for the first quarter during the year 2014 has represented similar type of transaction value towards fourth quarter during the last year, which obtained as total value equal to £1.39bn. Nevertheless, first quarter of 2014 has contained only half of the total numbers of plazas. People have even compared the first quarter of 2014 with that of 2013, where volume of transactions becomes equal to £1.37bn comprising of 11 different types of shopping malls. Q1 has reflected health stock level in combination with big range of transactions in lot sizes. Here, you will find average lot size as £112m for 13 different types of plazas at the primary end of the entire market. 

Intu Properties have remained the headline transaction for the present year, these property owners have made two primary purchases, which include acquisition of 50 percent stakes in the property named as Westfield Merry Hill and 100 percent of purchase of another building referred as Westfield Derby. Particularly, the purchase price for Merry Hill center was about £371m, which reflected the Net Initial Yield equal to 5.21 percent. On the other side, acquisition of Derby property has done for the value of £390m, which resembles 6.89 percent of the Net Initial Yield. These two major transactions of the company have contributed about 60 percent of the total transaction volume during the first quarter. With the advent of powerful information systems and experienced officers, Intu properties have become the owner of 16 different shopping centers in various UK cities, along with first UK’s multichannel shopping center. 

According to Mr. Donnell, the Head of Shopping Malls Investments, “The market remains buoyant with Q1 2014 volumes 56% above the five year quarterly average. The high trading volumes this quarter were driven by a smaller number of bigger deals, although there is pent up demand for smaller lot sizes. Correctly priced centers are seeing high levels of demand and we are witnessing increasing capital flows and demand from Asian markets, where DTZ is the number one adviser.” Read in detail from here.