PARIS-Investment in French retail property grew strongly in thefirst half of the year and the expansion is likely to continue inthe second half, according to international realtor Savills. Theinvestment climbed to $2.8 billion from $700 million in the firsthalf of 2009, largely as a result of the completion of prime retaildeals such as Unibail-Rodamco's acquisition of Simon Ivanhoe andthe purchase of the prime Cap 3000 shopping centre by AltareaCogedim and its shareholders Predica and ABP.

“We believe this upward trend in investment is set tocontinue throughout the second half of 2010 as some major assetsare currently under negotiation, including St-Martial in Limogesfor $132 million and l’Heure tranquille in Tours for $106 million,”said Savills’ Christophe Gouny.

Yields have come under pressure as a result of competitionbetween investors and scarcity of prime investments. Prime yieldsfor large regional shopping centers fell to 5.5% from 6% in 1H09,and for major retail parks eased to 6.75% from 7%. However,secondary properties held steady at around 6.75% for shoppingcentres and 8% for retail warehouses.