Compared with 2010, which was characterised by a record supply of new shopping centres, no significant retail schemes have been completed since the beginning of 2011, according to the Q2 report of Forton International.
| Property in Bulgaria - Today's Top Listings |
| Living in Bulgaria - Today's Top Stories |
Looking forward, though, current shopping centre stock stands at almost 560,000 square metres, with a further 237,000 square metres of retail space under construction. When all of the projects are completed the total shopping center stock in the country will increase by 42% to nearly 800,000 square metres or 107 square metres per 1000 residents.
Prime high street rents have remained stable over Q2 2011, although a decrease was observed in shopping centre rates as a result of both rental concessions and new lease agreements signed at lower rent levels. The estimated average fall is about 9-11% on a quarterly basis and approximately 20% compared with the same period last year. Furthermore, there are indications that rents are gradually stabilising around their current low rates, which is a positive trend in view of the constant fall observed since the beginning of 2009.
Forton points out that the investment market for retail properties has improved in terms of completed transactions, with values for the first quarter exceeding Euro 115 million - a significant improvement on both the previous quarter and the same period in 2010.
According to Forton, the Mall of Sofia (23600 square metres of retail space), one of the prime shopping malls in Bulgaria, was acquired in June for approximately Euro 105 million. And in Stara Zagora a retail park with anchor tenants Mercator, Aiko and Mobbo was recently sold to Bluehouse Capital for Euro 11 million.
Forton's data also shows that prime shopping center yields remain unchanged at around 9% for a fourth quarter in a row and that investment interest is focused on prime schemes such as retail parks or shopping malls with strong recent performance and sustainable rental income.
Prime high street rents have remained stable over Q2 2011, although a decrease was observed in shopping centre rates as a result of both rental concessions and new lease agreements signed at lower rent levels. The estimated average fall is about 9-11% on a quarterly basis and approximately 20% compared with the same period last year. Furthermore, there are indications that rents are gradually stabilising around their current low rates, which is a positive trend in view of the constant fall observed since the beginning of 2009.
Forton points out that the investment market for retail properties has improved in terms of completed transactions, with values for the first quarter exceeding Euro 115 million - a significant improvement on both the previous quarter and the same period in 2010.
According to Forton, the Mall of Sofia (23600 square metres of retail space), one of the prime shopping malls in Bulgaria, was acquired in June for approximately Euro 105 million. And in Stara Zagora a retail park with anchor tenants Mercator, Aiko and Mobbo was recently sold to Bluehouse Capital for Euro 11 million.
Forton's data also shows that prime shopping center yields remain unchanged at around 9% for a fourth quarter in a row and that investment interest is focused on prime schemes such as retail parks or shopping malls with strong recent performance and sustainable rental income.
Related articles:
More Positive Economic News - IMF Review Optimistic
More Positive Economic News - Airport Passengers Climb
More Positive Economic News - Car Sales Rocket
Bulgaria's Stock Exchange - SE Europe's Top Performer
Read more on our websites ...
MovetoBG.com - and Twitter @MovetoBG
Bulgaria Gateway - and Twitter @BulgariaGateway
Property Partners BG - and Twitter @PropertyPtnrsBG - or on Facebook
No comments:
Post a Comment