Intervest Retail NV/SA, a listed property investment fund, reports that it has concluded an agreement with Group GL International for the purchase of a Factory Outlet Centre in Messancy.
The investment fund concluded an agreement with Limburg project developer Group GL International for the purchase and further development of an as yet unbuilt Factory Outlet Centre in Messancy (Arlon).
In a Factory Outlet, manufacturers offer their products directly to the consumer, i.e. without wholesalers and retailers. The products sold are mostly excess stocks and line-ends so that discounts of 30% to 70% can be given. Belgium has only one other Factory Outlet, located in Maasmechelen.
The Messancy project will have a shop area of approx. 13,700 m². Besides this, approx. 3,000 m² of leisure activities and two restaurants will be provided. Group GL will also build a hotel which will not, however, be bought by Intervest Retail.
As of now, various letters of intent have already been signed with several tenants.
The construction started in October and should be finished by April 2003. The total cost of acquisition and construction is estimated at around € 40 million.
With this latest acquisition, the investment fund diversifies further its real estate portfolio, geographically (the Walloon provinces) as well as according to the type of product. Intervest Retail NV/SA doesn’t have the intention of selling the Messancy Outlet Center in the short run.
As at 30.09.02, the portfolio has a size of € 245 million (deed in hand). The estimated market value of the Outlet Center will amount after completion to a large € 48 million (deed in hand).
(source: Intervest)
