Local Authorities Acquire Retail Assets Amid Online Shopping Surge
- Councils to spend £1bn on shopping centres by end of 2020
- Investments account for almost one in five transactions since 2016
- Local authorities responsible for 12% of all shopping centre investment by value since 2016
- UK institutions and REITs net sellers
- Public-private joint ventures preferred method of town centre regeneration
- Growth of online shopping and high business rates identified as main challenges
Local councils are investing £1bn in shopping centres by the end of 2020 to revitalize town centres affected by store closures. Since 2016, they have invested over £770m in these assets, accounting for nearly one in five transactions. Councils represent 12% of all shopping centre investment by value since 2016, peaking at 16.7% in 2018. This contrasts with UK institutions’ net sales of £1.84bn and REITs’ net sell-off of £309m since 2017. A survey found that 69% of respondents support public-private partnerships for town centre regeneration. The ‘Fixing Our Broken Town Centres’ report also highlights online shopping growth and high business rates as the primary challenges. Experts call for government intervention to address retailer struggles and adapt to changing consumer habits.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the increase in local council investment in shopping centres, cites sources for its data, and includes expert opinions on the topic. It also presents a balanced view of the issue by mentioning potential solutions to address the challenges faced by town centres.
Noise Level: 6
Noise Justification: The article provides relevant information about local councils investing in shopping centers to redevelop town centers and includes data from a report on the topic. However, it could benefit from more analysis or discussion of potential long-term trends or consequences of these actions.
Financial Relevance: Yes
Financial Markets Impacted: UK retail property market
Financial Rating Justification: The article discusses local councils investing in shopping centers, impacting the UK retail property market as they account for almost one in five transactions since 2016 and their preference for public-private joint ventures for town center regeneration. The involvement of institutions and REITs is also mentioned.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk 
