🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

CORRECTED - Europe mall projects shelved amid downturn-report

Published 04/16/2009, 05:23 AM

(Corrects to add 'million' to conversion figure in lead)

LONDON, April 16 (Reuters) - Up to 7 million square metres (75 million square feet) of planned shopping centres in Europe have been put on hold or cancelled amid the credit crunch, and more could be shelved as the global downturn gets worse, a report said on Thursday. The report from real estate consultancy Cushman & Wakefield said that European mall space will grow at the slowest pace since 2005 over the next two years, with 10 million square metres expected this year and 7 million square metres in 2010, down 40 percent from the firm's forecast in July 2008.

"The downturn in the development market is mainly due to the difficulty in securing finance ... exacerbated by many retailers being cautious in their expansion," Cushman's European retail partner Boris van Haare Heijmeijer said.

Cushman said the bulk of mall space added in the next two years would be in emerging Europe, with 2 million square metres planned for Turkey and 1.25 million square metres for Russia, but it expected some projects would be cancelled as the economic outlook worsens.

The slowdown in growth followed a record year for mall openings in Europe in 2008, when more than 9 million square metres of retail space was built, led by Russia, Turkey, and the United Kingdom, the report said. (Reporting by Daryl Loo; editing by Karen Foster) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.