TH Real Estate, on behalf of TIAA-CREF, has completed the purchase of a 50% interest in Viladecans The Style Outlets, currently under development in Barcelona, Spain.
The asset has been acquired from NEINVER, and forms part of the strategic joint venture announced earlier this year – between NEINVER and TIAA-CREF – to create a leading outlet platform in Europe. TH Real Estate acts as investment advisor to the vehicle, while NEINVER provides specialised asset management and operational services to the assets. Both partners have aspirations to build a significant investment platform over time, the initial focus being on NEINVER’s existing portfolio and development pipeline across Europe. The partnership – a 50:50 exclusive shareholders joint venture agreement - also includes The Style Outlets, in Roppenheim, France, acquired in January 2015, and the more recent acquisitions of Factory Annopol in Warsaw and Factory Krakow and Futura Park in Krakow, Poland.
Phase 1 of Viladecans The Style Outlets, scheduled to complete in 2016, will provide 100 retail units over a total GLA of 19,800 m² (215,280 ft²). The outlet mall is strategically-located close to El Prat International Airport, just 15 minutes’ drive from downtown Barcelona, with a local catchment area of 6.4 million residents.
The acquisition enhances TH Real Estate’s Iberian management portfolio. Outside of the JV agreement with NEINVER, TH Real Estate manages an approx. €1 bln portfolio of nine shopping centres across the region, on behalf of other third-party clients.
David Turner, Head of TIAA European Investment, commented:
“European Outlet Malls, as an asset class, has regularly outperformed other retail sub sectors and continues to form a key component of our growth strategy in Europe. Our partnership with NEINVER continues to provide access to a strong portfolio of outlet malls, diversified across key European markets.”
Eduardo Ceballos, Country Head of NEINVER Spain, said:
“We are proud to develop this project together with TH Real Estate. Based on our experience and leadership in the Spanish market, and thanks to its characteristics, brand mix and outstanding location, we are confident that Viladecans The Style Outlets will be a successful project. Meanwhile, Barcelona Metropolitan Area is a strategic hub to bolster our leading outlet platform in Europe”.
Jamie Acheson, Investment Manager, European Outlet Malls at TH Real Estate, added:
“The acquisition of Viladecans The Style Outlets in Barcelona is the next step in our European joint venture with NEINVER. Spain has undergone considerable economic reforms that have put it in a good position to continue out-performing the Eurozone in terms of growth over the medium term. Madrid and Barcelona are leading the national recovery, and this has been reflected in soaring liquidity levels in the retail investment market. Combined with a tight planning regime for retail space and highly-favourable catchment income demographics, we believe this scheme will deliver attractive returns.”
Source: TH Real Estate
For more information on Viladecans The Style Outlets, please see Europe Real Estate's report here
