Retail rents remain buoyant in emerging markets as an expanding middle class attracts tenants despite the global economic slowdown.
Commercial property services company, Cushman and Wakefield, surveys its international offices annually to study retail rental performance. In the year to June 2012, rents increased 4.5 per cent globally, rising in 147 of 326 locations.
Talk about the rise of the “multilatinas”.
Cencosud, the Chilean retail group, became the latest Latin American multinational to flex is financial muscles on Thursday after it reached an agreement to acquire Carrefour’s Colombian assets in a deal with an enterprise value of €2bn ($2.6bn).
One company’s blunder is another company’s opportunity.
On Wednesday, just as Chilean retailer Falabella announced that its profits were down over the first half of 2012, Swedish retailer Hennes & Mauritz AB, better known as H&M, said it would expand into South America, opening a flagship store in Santiago, Chile, during the first half of 2013.