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Deloitte Is The Leading Advisor Of Shopping Centre Deals

20 October 2016 – Expansión

The Big Four are positioning themselves as major players in the market to advise real estate operations and are gaining ground in a segment that has been dominated by other players until now. The professional services firms are looking for new business niches in order to generate returns and strengthen their audit businesses, which generate significant recurring income for their balance sheets, but which are now mature markets, with limited margin for growth.

This effort has led the Big Four to dominate the transaction advisory sector and, in the case of Deloitte, it has managed to gain a foothold in the market that has been particularly dominated by real estate consultancy firms until now: the shopping centre segment.

Specifically, the company chaired by Fernando Ruiz now leads the ranking after participating in almost half of the major operations closed in 2016 to date. So far this year, transactions amounting to almost €2,000 million have been signed in the shopping centre segment, which has become one of the star products of the real state market, boosted by the economic recovery and improvement in consumption.

In this growing market, which still has further potential for growth, Deloitte has earned its place as an advisor of choice. Specifically, the professional services firm achieved a market share of more than 50% of the transaction volume, outperforming CBRE, with 32%, PwC, with 7% and JLL and Savills, with 4% each.

Deloitte participated alongside CBRE in the largest operation of the year so far in the shopping centre segment: Diagonal Mar (Barcelona). The asset was acquired by Deustche Bank from Northwood over the summer for almost €500 million. Deloitte advised the buyer whilst CBRE advised the seller.

The professional services firm has also advised Carrefour on its purchase of 36 supermarkets from Eroski for €205 million and TPG’s acquisition of the L’Aljub shopping centre in Elche (Alicante) for €100 million. Another major operation closed this year in this segment involved the Gran Via de Vigo shopping centre, which was acquired by Lar España in a deal advised by another Big Four firm, PwC.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake