U.K. retail property investment rebounds in H1 2021

Investment in U.K. retail property is beginning to rebound, with transaction volumes totaling £2.76 billion (€3.2 billion/$3.8 billion) in the first half of the year, up 80 percent on the same period in 2020,  according to Knight Frank.

Knight Frank’s latest Retail Investment Update shows activity in the first half was driven by increased investor demand for retail warehousing, i.e. big-box retail, with such transactions exceeding £1 billion (€1.2 billion/$1.4 billion), including Brookfield Properties’ £330 million (€388 million/$454 million) acquisition of a portfolio of assets from Hammerson.

There is also very strong competition for grocery stores, which saw £780 million (€912 million/$1.1 billion) of investment in the period, with REITs and institutions in particular attracted to the longer leases and stronger covenants versus other retail subsectors.

Knight Frank’s analysis shows a number of investors are beginning to capitalize