Luis Espadas, Managing Director in the retail division, Savills Aguirre Newman Image: Savills
Ticker

Retail investment into Spain in 2020 expected to reach up to 2bn euros

Retail investment volumes for 2020 are expected to exceed those of 2019, despite Covid-19, a new report from Savills Aguirre Newman suggests.

According to data from the international real estate advisor, 2020 retail investment volumes are expected to reach between 1.5-2bn euros across traditional products (excluding high street). This is largely due to the sale of Intu shopping centres and large supermarket portfolios which alone could reach 700m euros by the end of the year.

The report shows that there has been increased appetite amongst investors for assets with long-term contracts based on convenience and, as such, supermarket portfolios and medium-sized urban parks have been popular. At present, with supermarket operations in the market estimated to be 500m euros, added to the 190m euros already transacted, a record year that would far exceed the average of some 270 million per year in supermarkets over the last 20 years is expected.

Luis Espadas, Managing Director in the retail division, Savills Aguirre Newman, explains: “Given the global uncertainty and the transformation process that the retail sector is undergoing, investors are looking for defensive assets with long-term contracts and good financial solvency. This investment demand has found an answer in the food sector where several operators have put part of their portfolio on sale via a sale and leaseback strategy.”

On the other hand, a compression of yields in prime food portfolios is expected in Madrid and Barcelona and, although there are no points of reference yet, there is an intention to sell and some price adjustment is expected. In the High Street market, the restriction on mobility has affected investment to a greater extent, which could gain momentum in the second half of the year.

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

Skysun expands solar presence in the AG Real Estate portfolio

After a fruitful collaboration that began in 2018 on the Brussels II warehouses in Anderlecht, AG Real Estate and Brussels start-up Skysun have decided to extend their partnership to the Office & Retail activities of the real estate subsidiary of AG Insurance.

Topping-out ceremony for ECE’s first project on the British market

The project partners Art-Invest Real Estate, Dukelease, and ECE jointly celebrated the completion of the structural work and the successful course of the “101 on Cleveland” apartment building project in London’s West End.

Supermarket Income REIT: acquisition of a Morrisons supermarket in Telford, Shropshire

Supermarket Income REIT announces the acquisition of a Morrisons supermarket in Telford from Santander Trustees Limited for £14.3 million (excluding acquisition costs), reflecting a net initial yield of 5.0%.

INGKA Centers received four prestigious prizes

The International Council of Shopping Centers (ICSC) announced the winners of its 2020 Visual Victories Awards. INGKA Centres received four prizes, including two Gold winners for their MEGA Meeting Places.

John Lewis Partnership Trust for Pensions appoints new trustee chair

The John Lewis Partnership Trust for Pensions has appointed Sarah Bates as Chair of the Trustee from 1 August 2020 and replaces Dame Jane Newell, who has stepped down after being Chair since 2013.

St David’s opens enhanced Hollister Co. store

The St David’s Partnership has announced the official opening of the new look 9,559 sq ft Hollister Co. store at St David’s, in Cardiff, one of the UK’s premier retail and leisure destinations.