High yields and belief that ecommerce fears are exaggerated boost investor confidence in retail parks.
Surely with so many big-name retailers struggling, closing stores and announcing CVAs, now is not the time for an institutional investor to fork out £167.25m for a part-share in one of the UK’s largest retail parks.
However, M&G’s investment actually reflects widely held confidence among leading investors in the long-term outlook for out-of-town retail.
Indeed, retail parks are expected to deliver the best total returns of all traditional commercial property subsectors in 2020, 2021 and 2022, according to last month’s IPF Consensus Forecasts report, which is based on the views of 26 of the industry’s biggest fund managers and advisers.
So why are so many people happy to look beyond the bad press about bricks-and-mortar retail?
You must be logged in to view premium stories.
Take out a print and online or online only subscription and you will get immediate access to:
To get access to premium content subscribe today
Alternatively REGISTER for a free trial to access up to 4 articles and sign up for email alerts