France and Ireland top shopping centre performers in Europe

The shopping centre sector continued to show strong performance across Europe as a whole last year, according to the fourth edition of the CB Richard Ellis/IPD European Shopping Centre Digest, launched at MAPIC today.

In 2006, the shopping centre sector out-performed the other real estate sectors in eight out of the 15 European countries covered by the Digest, and in a further two countries out-performed the all retail property index for that country (see Figure 1 below).

For the second year in succession, the star performers in the shopping centre sector were France and Ireland, which generated returns of 24.9% and 20.5% respectively. The lowest shopping centre total returns in 2006 were, for the second year running, generated in Germany (4.9%) and Switzerland (7.8%). In both countries, returns improved relative to the previous year, but with only modest rental growth and at best minimal downward yield shift. These were the only two countries where shopping centre returns did not reach double digits.

The Digest collates investment performance data from 1,616 shopping centres in 15 countries across Europe, with a combined total capital value of €88.4 billion at the end of 2006. Based on data compiled by Investment Property Databank (IPD) from its national databanks, the Digest provides a unique guide to the investment performance of the sector...
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