Europe’s
biggest shopping centre landlords face a gruelling 12 months, with crashing
rents and values falling by 30%.
Moody’s Investors Service has warned of a hit to the credit
quality of mall owners including Hammerson, Unibail-Rodamco-Westfield and
Klépierre. It predicts “a significant deterioration” in rental income over the
next 18 months.
By the end of 2021,
Moody’s expects retail assets in continental Europe to have shed 15% to 20% of
their value, with those in the UK to have lost up to 30%, compared with June
2020.