Resolution Property, one of the leading European real estate investors, has agreed to buy Rosada Factory Outlet in Roosendaal, Netherlands, from CBRE Global Investors' DRET Masterfund CV for an undisclosed sum.
Resolution plans to expand the centre with the development of c.7,200 m² of new retail space.
The c.16,000 m² factory outlet center was developed by the US company MDG and opened in 2006. It comprises 72 retail units in an open-air 'village' design, with tenants including international fashion brands Nike, Riverwoods, Tom Tailor, Body Shop, Petit Bateau, Puma and Levi's.
Rosada Factory Outlet is 82% let with a further 5% of leases in advanced negotiations. Average rents across the centre, which currently has 50 tenants, are in the region of 240 per m² per annum.
Resolution plans to expand the center with the development of c.7,200 m² of new retail space, including food and gastronomy outlets, in 35 additional units. It is expected that construction of this second phase will start in 2013, with a targeted opening in 2014. The acquisition and extension of Rosada represents a total equity commitment by Resolution of more than 30 million, excluding debt finance.
In line with its intensive asset management strategy, Resolution's business plan for Rosada will focus on optimizing the tenant mix in the center's first phase, attracting additional international brands, and implementing the second phase development, providing larger units to attract further anchor tenants.
Roosendaal, in south west Netherlands, is located 50km south of Rotterdam and 40 km north of Antwerp in Belgium. Rosada Factory Outlet enjoys an extensive Dutch and Belgian catchment of 18 million within 90 minutes and 8.4 million within 60 minutes.
Peter Todd, in charge of Resolution Property's European retail investments, said:
"On completion of the second phase of development, Rosada will have critical mass to become the dominant retail destination in its large cross-border catchment area. The extension of the asset, combined with an optimized tenant mix, should meet the requirements of our value-add investment strategy."
Resolution was advised by Jones Lang LaSalle, while Cushman & Wakefield represented CBRE Global Investors. Stable International will be retained as the manager of the center. Legal advisers on the transaction were Loyens & Loeff for Resolution and Houthoff Buruma for CBRE Global Investors.
Source: FTI Consulting