Shared investment vehicles have become the preferred route for institutions to invest in UK shopping malls, according to new research from Donaldsons. Meanwhile, nearly 40 per cent of funds' exposure to the sector is through shared-ownership vehicles.
The value of shared ownership in shopping centres has soared from£60 million in 1998 to£650 million today. But Donaldsons head of retail Bryan Duncan warned that asset managers are incentivised to produce attractive returns for the institutional investors.
'To deliver this aggressive performance, managers may seek to maximise rents in the short term through more aggressive management of tenants,' he added.