LONDON-The shopping centre investment market in the UK appears to be staging a comeback after hitting a low point at the beginning of 2001, according to new research from DTZ. The final quarter 2001 saw a total of £817 million ($1.17 billion) invested with 27 malls changing hands.

This is more than in the previous two quarters combined, and marks a big turnaround from the equivalent quarter in 2000, when just eight schemes worth £223 million ($333 million) changed hands. However, the increase in activity at the year end was not sufficient to prevent 2001 emerging as the slowest year for shopping centre investment deals since 1997 with £1.92 billion ($2.75 billion) of deals completed.

According to DTZ's Director of Retail Investment Bruce Nutman, two portfolio transactions dominated the market in the final quarter, with Great Portland Estates selling four schemes for £235 million ($336 million) and Coal Pension Properties selling five for £130 million ($186 million). And two large portfolio sales are likely to complete in the first quarter of 2002 to continue the market revival. Land Securities is currently marketing a £250 million ($358 million) portfolio of six schemes while Legal & General is planning seeking to sell schemes in Birkenhead, Eastbourne and Warrington into a joint venture for in excess of £200 million ($285 million).