Intu SGS & Debentures - comment

Slowly but surely, the level of transactions in the shopping centre space is starting to return. Various press reports outline potential asset sales at c. 8-9% initial yield. These assets tend to be in the £10-30m price range, which include shopping centres in regional areas including Aberdeen, Livingston, Luton and across the island of Ireland. However, there were two larger assets that have sold recently, the Hammerson Leeds shopping centre sold for at a net initial yield of 7.4% and Silverburn in Glasgow which was sold for a net initial yield of 9.3%.

What is apparent from recent completed and proposed sales is that occupancy and rent collection is back to near normal, with some centres at near 100% capacity. However, rent levels are still substantially down on pre-Covid levels.