Following lower volume of shopping centre investments for the first two quarters of 2017 investment transactions in this sector are picking up, with Co-Star reporting that investment by capital value is expected to reach £3bn by the end of 2017.

Shopping centre investment transactions in 2016 were £3.05bn and £4.3bn in 2015.The largest transaction was Festival Place in Basingstoke for £290 million. In 2014 transactions totalled £5.3billion with the largest transactions being Islington’s Angel Shopping Centre and Central London’s West One, acquired by Norges for £240m.

UK Shopping Centre Investment trends

In total, shopping centre transactions in Q1 2017 equated to £358 million in seven deals. This reflects a 56% decrease compared to £810 million in 12 transactions in Q1 2016 and a 58% decrease on £845 million in 14 transactions in Q1 2015.

Retail spending

In August 2017, the quantity bought (volume) in the retail sales industry increased by 1.0% compared with July 2017; with other non-food stores and non-store retailing as the main contributors to growth. Compared with August 2016, the quantity bought increased by 2.4%; the 52nd consecutive month of year-on-year increase in retail sales.Year-on-year contribution of food stores remains flat whilst there was a fall in the contribution of growth within petrol stations, showing that contributions to the overall growth came from non-essential items.