Resolution Property has completed the sale of its 47,000m² French outlet centre portfolio, comprising assets in the cities of Roubaix and Troyes, to a fund managed by Ares Management for in excess of €200m.
The disposal is part of Resolution’s divestment strategy for Resolution Real Estate Fund III.
Since acquisition in 2010, Resolution Property has repositioned both assets as premium retail outlets, attracting high-end brands like Hugo Boss, Tommy Hilfiger, Gant, Armani, Furla, Superdry, the Kooples, L’Oreal and Esprit. It has leased the majority of the vacant space and re-engineered more than 50% of the lettable area of both assets to optimise the tenant mix. This has resulted in net operating income increasing by 50% at Roubaix and 40% at Troyes.
Resolution acquired McArthurGlen Roubaix, an outlet centre near Lille, for €23m and McArthurGlen Troyes for €85.5m both from Henderson Global Investor's European Outlet Mall Fund in 2011.
Michel Nangia of Resolution Property said: “Through a five-year programme of transformational asset management we have delivered a substantial uplift in value across both assets and positioned them for future growth under the new owners. This successful disposal is a great endorsement of our strategy, which we continue to deploy across our other European outlet centres.”
Resolution Property’s asset management strategy for Roubaix and Troyes since acquisition has markedly enhanced retailer performance, increasing total retailer sales by around 35%. It has also unlocked the opportunity to extend the Troyes centre achieving irrevocable building and retail permits and attracting two new anchor tenants to Phase 2.
