CG malls europe - Commerz Real

During the first quarter of 2009, the European retail investment market reached its low
point. The biggest problem in 2009 was the absence of the debt securitisation market,
and only large equity players where active during the first half of 2009. Investors where
seeking for core assets mainly in the UK, the Netherlands, France and Germany. During
the second half of the year, activities picked up in all European countries. At EUR 8.1 billion,
Q4 2009 registered the highest retail investment volume since Q3 2008. For 2009,
the total retail investment volume for the whole of Europe amounted to some EUR 20
billion, that is, down by a third compared to 2008. With a 28% share of the total volume,
retail investments remained virtually stable in comparison to 2008.
European Direct Real Estate Investments by Sectors
100%
80%
60%
40%
20%
0%
27%
19%
54%
21%
24%
55%
26%
25%
49%
32%
24%
44 %
24%
26%
50%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Jones Lang LaSalle, May 2010
30%
27%
43%
Others Retail Office
26%
25%
49%
27%
21%
53%
Source: Jones Lang LaSalle, May 2010
(EUR, bn) Data excludes Residential, Land and Developments, deals considered >USD 5 million
(EUR, bn) Data excludes Residential, Land and Developments,
21%
27%
50%
22%
28%
51%
Investor’s
deals
interest
considered
in shopping
>USD
centres
5 million
very much concentrated on the prime end of the
market. Therefore the average prime yield for this market segment started to stabilize
in Western Europe after an increase of nearly 150 base points between 2007 and the
first half of 2009. During the second half of 2009, the average prime yield came down
by 20 base points to 6.1%. This decrease was mainly driven by pricing in the UK, where
the prime yield decreased from 7% in Q1 to 6.25% in Q4 2009. Yields for secondary
shopping centres started to stabilise, but there is not much market evidence to substantiate
the pricing.
Manager‘s Report on the Fund
15