Retail REITs Strategically Shopping Assets to Solicitous Market
Retail Traffic reports: Real Capital Analytics (RCA) Managing Director Dan Fasulo was recently asked by Retail Traffic to share his opinions on a developing situation in the retail mall sector. With valuations of mall properties rising in primary -- and even secondary markets -- across the US, retail REITs such as Australia’s Westfield Group and New York-based Kimco Realty Corp have brought a significant number of assets strategically to market. These REITs are hoping to reallocate their portfolios and boost their bottom lines as they search for their own acquisition opportunities, and other retail REITs, such as Simon Property Group and General Growth Properties are engaging in similar practices.
Mr Fasulo indicated to Retail Traffic that there is sufficient appetite for the influx in offerings to the retail market, and told the magazine that, “You are seeing a situation where private equity has capital to allocate, you have pension funds that are back buying properties, you have some foreign money…Westfield is not a distressed seller so they can choose not to sell if they don’t find the pricing that’s attractive. But I do think there is enough demand in the marketplace to buy these properties right now.”
Retail trades are being fostered by current market conditions, as according to Retail Traffic, “…competition for core assets has intensified so much that investors have turned their attentions to class-B centers or to centers in secondary and tertiary markets.” Sellers, including the largest public REITs, are looking to take advantage of this so-called “sweet spot” in the investment sales market’s new cycle.
To read more on this exciting situation in the retail sector, along with more insights from RCA’s Dan Fasulo, please see the full article on Retail Traffic’s site.
View the full article on Retail Traffic: Retail REITs Strategically Shopping Assets to Solicitous Market
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Posted by: Nina Turner