Invesco Real Estate (IRE) has acquired the Designer Outlet Centre in Wolfsburg (DOW), northern Germany on behalf of its separate account client Bayerische Versorgungskammer (BVK). Contrary to other designer outlets, the approximately 17,500m² DOW occupies a prime, inner city location, which benefits from excellent accessibility for the local and surrounding population of Lower Saxony of approximately 4 million people.
The asset has been purchased from Europa Capital LLP and its partner Hans Dobke, Principal of Outlet Centres International (OCI). As part of the transaction, Hans Dobke will retain a minority equity interest and OCI will continue the day-to-day management of the centre in conjunction with IRE.
Fabian Manegold, senior director - transactions, Germany at IRE says: "Outlet centres are key distribution channels for today’s brands and coupled with robust consumer spending in Germany, and the unique location of this particular centre, this proven concept and sub-sector of the German retail market will, in our view, provide strong income growth and total returns for our client’s portfolio.”
Steffen Pilopp, senior director - fund management at IRE, commented: “Thanks to our on-the-ground transactions team who helped us acquire this unique opportunity, the property fulfills the key fundamentals to add value to our client’s portfolio while benefitting from modern architecture and a BREEAM “Good” rating.
“Following the acquisition, we will embark on a c.4,500m² development of the property to increase its tenant base and parking facilities, thus increasing the number of units to 100 and place DOW among the top three largest outlet centres in Germany.”
The DOW is home to over 70 national and international brands including anchor tenants such as Abercrombie & Fitch, Adidas, Calvin Klein, Michael Kors, Nike, Polo Ralph Lauren and Tommy Hilfiger. It benefits from annual footfall of over approximately 2.6 million visitors each year.
On this transaction, the advisers to Invesco Real Estate were Gleiss Lutz (Dr. Tim Weber), SREC (Oliver Schuster), Bonner Energie Institut (Dr. Stein), Deloitte (Claudia Sendlbeck), LBImmowert (Andrew Armitage). The financing bank is BayernLB.
