Retail Investment in European Reaches Peak

Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

LONDON-Despite the absolute decline in retail investment across Europe in first half 2009, it still accounted for 35% of total European property investment, up from an average over last five years of 26%, says CB Richard Ellis. This is the highest proportion on record.

Very few large deals took place in 1H ’09, and the average transaction size fell to €18.4 million, a 59% decline from the market peak in 1H ’07, and eight of the top 10 transactions were retail. This included Europe’s largest deal – the sale of the mostly retail Dawnay Day portfolio in the UK for over £600 million. The relative strength of the market for large retail lot-sizes has helped boost the sector’s share and 56% of all deals over €100 million in 1H ’09 were retail.