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Chart of the Day: Retail property deals soared 204% to $4.1b in 2019

Investor interest as well as M&As drove growth.

This chart from Colliers International revealed that retail property investment sales skyrocketed 204% YoY to $4.1b in 2019. In the second half of 2019, however, transaction volume contracted 6.7% HoH on a high base.

The growth in sales for the year was driven by keen investor interest as well as mergers and acquisitions (M&As).

REITs have also been active, with 313 Somerset injected into the newly-listed Lendlease Global Commercial REIT as part of the initial portfolio, whilst the merger of two OUE trusts priced Mandarin Gallery at $3,908 (US$2,901) psf.

“Over the next few years, the market remains conducive for deals given a favorable interest rate outlook, limited new supply and bottoming rents,” the report added.

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