* Deal volumes may nearly double their 2010 levels
* More assets coming to mkt, some from banks
* Yields on prime malls seen at about 6.5 pct
By Andrew Macdonald
LONDON, June 27 Spanish retail property's appeal
to investors will linger into late 2011, with more shopping mall
assets being sold into an increasingly competitive market,
potentially doubling deal volumes to about 1 billion euros
($1.43 billion), research showed.
Property consultancy Savills said Dutch, British and
German funds would continue to dominate transactions, having
accounted for about 90 percent of the 696 million euros deal
volume in 2010.
"About 700-800 million euros is expected to be transacted
(this year) but with some investment opportunities totalling 100
million euros alone, a larger total could be achieved," Savills
said in a statement on Monday.
Deal volumes could rise to about 1 billion euros by the sale
of two malls -- Invest Cos' Marineda City in La Coruna and
Acciona's Splau in Barcelona -- that are on the market
separately for a total of about 500 million euros, Savills said.
Investment volumes into Spanish malls for the January-May
period totaled 165 million euros, Savills said.
Gross yields for prime shopping centres would remain at
about 6.5 percent on average, with retail parks and secondary
properties achieving gross yields of about 7 percent, it said.
Global property investors have been scouring Spain for
discount retail assets for the past year, betting the nation's
recession-hurt economy is at or near its nadir and that a
gradual return to health will boost prices.
Spain's economy is seen growing by 0.7 percent in 2011 and
by 1.4 percent in 2012, a Reuters poll showed.
"Everything points towards the fact that investor activity
is improving. The amount of product for sale has increased and
investors appear to be more interested in actively participating
in the market," Savills said.
"Also, new players on the investment scene could certainly
boost investor activity."
Savills said the increasing number of vendors in 2011 would
be led by banks divesting assets, followed by local developers
and traditional investors.
In April, Reuters reported several investors seeking deals
in Spain, among them F&C REIT , Henderson Global
Investors , Cerberus Capital , BlackRock
, and Unibail-Rodamco .
In the same report, Investment Property Databank research
showed commercial property total returns for 2010 hit 4.9
percent, from 2009's negative return of 9.3 percent, the
turnaround helped by increased rivalry for cut-price assets.
(Reporting by Andrew Macdonald; Editing by Louise Heavens)