NEW YORK--(BUSINESS WIRE)--Fitch Ratings has published its new Peruvian Shopping Mall Industry Dashboard. The publication explores key themes driving the growth and operational performance of the sector. Fitch expects the sector's positive growth trends and low vacancy rates to remain throughout 2014 and 2015.
Fitch views long-term fundamentals for the Peruvian shopping mall sector as solid due to strong economic growth. Peru's favorable economic environment has led to an increase in disposable income, which in turn has supported continued growth in retail sales and an increasing need for leasable area. The market dynamics should continue attracting investments. Investment in the sector was estimated at USD1.4 billion between 2010 and 2013. Interest in the sector remains high as capex in new shopping malls is anticipated to be around USD500 million in 2014.
The sector's healthy occupancy rates reflect an underpenetrated industry. The number of shopping malls in Peru has double since 2010 due to investments. Nevertheless, the Peruvian mall industry maintains low penetration rates with vacancy rates in the range of 3%-4% between 2011 and 2014 due to a limited supply of leasable area.
The top five main players made up approximately 60% of Peru's total GLA. The sector concentration of a few players, most of them leading retailers, is not expected to change in the short to medium term.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Peruvian Shopping Mall Industry Dashboard