The time may have come to begin looking at shopping centre investments in southern Europe, according to a new report from Henderson Global Investors — Southern European Shopping Centres.

“The property risk premium for Spain and Italy is higher than for most other major countries in Europe,” comments Stefan Wundrak, director of research, property, at Henderson Global Investors. “However, expected returns should compensate for the risk. Capital uplift will drive short-term performance as yields respond to lower risk aversion, and rental growth will contribute to performance after retail sales and retailer confidence recover.”

According to the Henderson report, prime yields for retail properties in Spain and Italy represent attractive discounts relative to France, Germany and the United Kingdom. But that window of opportunity is unlikely to stay open for long. While Italian and Span