Job offersmore »
- Outside Technical Sales Position, Horticulture - Canada
- Area Manager Russia
- Machine Operator Buitendienst
- Grower (cucumbers) - Australia
- Business Development Manager - The Netherlands
- Greenhouse Construction Workers - U.S.
- (Senior) Werkvoorbereider/Engineer Kas Plus - Netherlands
- International Account Manager - Netherlands
- Business Advisor - China
- Account Manager for Technical Horticultural Greenhouse Products - Canada
Top 5 - yesterday
Top 5 - last week
Top 5 - last month
- Panama: President signs contract law between the State and Del Monte
- Hort Connections: 'Smart Packaging' is the way of the future
- Levarht launches China-produced tomatoes in retailers across the country
- Volm Companies and Wyma Solutions announce North American strategic partnership
- Italy: Natura Iblea's Paniere Bio initiative
Exchange ratesmore »
Spain's retail to remain steady for 2012According to the latest retail report from Savills Spain can expect more of the same for this year. This means more of the same levels of muted retail investment - which in 2011 was around 520 million Euro - more stalled sales, turnover rent performance and continued rental discounts. In some cases these discounts have already been converted in permanent reductions.
Yields currently stand at 6.5% for prime shopping centres and 7% for prime retail parks and will remain steady across the sector given the risk premium required by investors to account for Spain’s macroeconomic situation.
The report states that Eroski disposals are coming to an end however Savills suggests there may be some additional supermarket sales as well as the sale of hypermarkets located in shopping centres. Parallel to this market deals involving share acquisitions, full transfer of business or sale of debt that has been associated with real estate property is expected to continue. In 2011 examples of this include Perella’s acquisition of RBS mortgages, mostly linked to retail product, and the acquisition by Sonae Sierra of the minority equity of Plaza Mayor Shopping Centre in Malaga.
Danny Kinnoch, international investment director at Savills Spain, says: “Consistent yield contraction and rental deductions since 2008 mean that 2012 should present attractive opportunities particularly for investors not dependent upon bank financing. There is scope for strong returns assuming market recovery over the medium term, which will keep international players acquisitive, and the ‘parallel’ market involving debt sales will provide alternative buys for opportunistic investors.”
In terms of rents, prime centres continue to have high occupancy rates and rents remain stable, around 90 Euro per sq m a month for average size units of approximately 150 sq m for new leases. Primark, H&M, Decathlon, IKEA and Desigual are amongst those who have all added stores to their Spanish portfolio whilst Inditex has engaged space in main developments to be delivered during 2012. A further 660,000 sq m is forecast to come onto the market but with delays anticipated this could be closer to 480,000 sq m.
Gema de la Fuente, head of Savills research in Spain, says: “Developers continue to act with caution as illustrated by the minimal difference between the volume of newly inaugurated space and the predictions carried out at the beginning of last year. Only the most feasible projects are being carried out as consumer spending continues to be cautious.”
Publication date: 2/6/2012
Receive the daily newsletter in your email for free | Click here
Other news in this sector: