* Spain shr of Europe commercial prop sales rise to 7.5 pct
* Value of investments drop by half to 1.85 bln euros
LONDON, Aug 19 Spain's ravaged commercial real
estate market has attracted more investors, such as opportunity
funds, as prices plunge, boosting its share of total European
property investments, a report said on Wednesday.
The world's largest real estate broker CB Richard Ellis
(CBRE) (CBG.N) said Spain's share of investments in European
commercial properties has more than doubled from 3 percent in
2005 and 2006, to 7.5 percent in the first half of 2009.
In value terms, Spanish commercial property investments
shrunk by half in the first six months of 2009, from the same
period in 2008, to 1.85 billion euros ($2.6 billion), although
the decline was less severe than elsewhere in Europe, CBRE said.
"An important driver of this investor interest in Spain is
the relative speed with which the market has repriced," CBRE
said, adding prime yields in Spain have risen as much as 225
basis points since the market's peak in mid 2007, against the
European average rise of 136 basis points.
Big discounts in Spain's office and retail properties, of up
to 50 percent have attracted private investors rather than
institutions, which are wary of falling rents as the Spanish
economy remained weak, consultants have said. [ID:nLG58808]
Spain accounted for two of the nine transactions valued at
over 200 million euros this year, including the sale of the
Plenilunio shopping centre by Banco Santander's (SAN.MC) Banif
real estate fund for 235 million euros, CBRE said.
"There were seven serious bidders for the Plenilunio
shopping centre which indicates ... there is already serious
competition for the best assets," Adolfo Ramirez-Escudero,
Executive Managing Director of CBRE Spain, said.
(Reporting by Daryl Loo; Editing by Andrew Macdonald)
(See www.reutersrealestate.com for the global service for real
estate professionals from Reuters)