UK Shopping Center Investment Doubles

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Sales of U.K. shopping centers reached £1.928 billion for the first half of 2013, more than double the £808 million worth of transactions during the same period a year ago, according to new data from Cushman & Wakefield. 

Nine transactions made up the total volume of retail shopping center deals. Most notable was the asset exchange between Hermes and M&G Real Estate during the second quarter. In the swap, M&G received the Friary Center in Guildford while Hermes took full control of the centre:mk in Milton Keynes after receiving M&G's 36 percent share in the center, the firm reports.

Other transactions include Pears' purchase of The Spires, Barnet, from UBS for £31.2 million and LaSalle's purchase of Church Square, St Helens, for £27.7 million from the ING Britannica Portfolio.

Demand for prime projects remains high and is outweighing supply, driving yields down from 5.5 percent at the end of 2012 to 5 percent, Cushman & Wakefield reports. The firm expects investor activity to increase in the second half of 2013.

"Investment demand is encouragingly strong and we are seeing investors from all over the world wanting to acquire UK retail assets," Charlie Barke, head of shopping center investment at Cushman & Wakefield, said in a release. "There is a growing belief that the sector has reached the bottom and now offers decent recovery prospects."

There are currently 20 projects under offer with a combined value of £1.012 billion.

Secondary markets are also reporting strong demand, creating competitive bidding, with high yields expected in the next six months, the firm said.