BCSC calls for revaluation of shopping centres as recession bites
The Telegraph today highlights research being conducted by the British Council of Shopping Centres that has led the industry body to call for a revaluation of the UK’s shopping centres in the current difficult economic conditions.
A working group of property leaders built by the BCSC, including Richard Akers, head of retail at Land Securities, and David Atkins, chief executive of Hammerson, says the boom in secondary shopping centre valuations before the recession has now led to a situation where one in five UK shopping centres is now at risk of defaulting on loans, the paper reports. The BCSC also points out that some centres are suffering from a lack of asset management as their owners are now in financial difficulty, the Telegraph adds.
The paper adds that more than 20 secondary shopping centres are said to be currently on the market, worth a total of £1bn. These include Houndshill in Blackpool, and centres in Fareham, Perth and Middlesbrough.
The Telegraph says the BCSC’s working party feels that shopping centre values must reflect greater transparency and consistency. It wants valuations to take more account of the management of centres and the changes in consumer habits as a result of growth in online shopping, which has helped to lead to more turnover-based rents for retailers.
