Via Outlets, the venture partnership formed by APG, Hammerson, Meyer Bergman and Value Retail, has signed an agreement to acquire four established outlet centres with a total gross asset value of €587m as part of a growth strategy in the European outlets market. The transaction, at a blended net initial yield of 5.5%, is subject to regulatory clearance.
The retail venues are located close to major cities in Germany, Portugal, Spain and Poland. Their purchase takes the total size of the VIA Outlets portfolio to €1.1bn across 10 assets and delivers critical mass to this successful European outlets venture.
Timon Drakesmith, CFO of Hammerson and Chairman of VIA Outlets Advisory Committee, said: “This is a rare opportunity to acquire strong outlet centres in an off-market transaction. Well-positioned European outlets continue to deliver strong sales growth supported by an improving customer offer and increasing tourist numbers across Europe.”
The five-year forecast unlevered IRR for the acquired assets is 11%.
The largest outlet to be acquired is in Zweibrucken, Germany, at 2,694m² with 114 tenants. It is located on the border between France, Germany and Luxembourg and connected by the main
arterial roads in the region. It was Germany’s first established retail outlet and includes Versace, Michael Kors, Polo Ralph Lauren, Tommy Hilfiger and Esprit.
Located close to Porto, Portugal, the outlet in Vila Do Conde covers 2,601m² with 129 tenants and the acquired site has further adjacent development land. Brands trading at the outlet include Polo Ralph Lauren, Michael Kors and Carolina Herrera.
The outlet in Spain is located north east of Seville, attracting a growing number of tourists visiting the Andalucia region. The outlet is 1,524m² and has 65 retail units with brands including Tommy Hilfiger, Mango, Polo Ralph Lauren and Adidas.
The outlet in Wroclaw, Poland, is the only retail outlet in the western Poland region and includes 1468m² of retail space and 87 units. The outlet houses brands such as Nike, Tommy Hilfiger,
Adidas, Guess and Calzedonia and sits within a wider retail offer.