London: European property deals in 2011 will likely near €140 billion (Dh714 billion) in total value, the highest since 2008, driven up by a string of big-ticket shopping centre deals against a bleak econ-omic backcloth, research showed.
Real Capital Analytics said transaction volumes in the nine months to end-September totalled €95 billion, up 21 per cent on the year-earlier same period, and dominated by deals in the German and Central European markets.
"This core European strength helped to offset the UK's weak regional markets compensate for the continued low levels of transactions occurring in peripheral countries, notably Spain, Ireland, Portugal and Greece," RCA said in a research note.
"For the full year, investment volumes are likely to surpass 2010 levels and encroach on 2008 market activity," RCA said.
European property transactions totalled €120.1 billion last year, €82 billion in 2009, and €142.8 billion in 2008, RCA said. Third-quarter transactions hit €32.1 billion, their highest level since the same period in 2008.
"The prime retail sector in Europe continued to attract capital in [the] third quarter," RCA said, noting this was driven by demand for high-value shopping centre transactions.
These included Westfield Group selling a 50 per cent stake in its Westfield Stratford City mall to Canadian Pension Plan and Dutch asset manager APG. RCA said the deal valued the mall at a total of €1.9 billion.
It was followed by two other chunky mall deals, notably the €360 million Skyline Plaza Shopping & Leisure transaction in Frankfurt, and the €277 million Galeria Mokotow transaction in Warsaw, Poland. In the nine months to end-September, €75 billion of commercial property was transacted.
