Savills IM enters outlet sector with €300m deal

International real estate investment manager Savills Investment Management has purchased two McArthurGlen designer outlet centres in France from real estate funds managed by Ares Management Corporation, and from McArthurGlen, for around €300 mln.

Located in Troyes and Roubaix, the assets have been acquired via the creation of a new OPPCI and on behalf of a club of investors. The investors comprise a number of institutions managed by a German multi manager in real estate and alternatives based in Frankfurt in Germany, as well as commitments from existing Savills IM funds. McArthurGlen retains a stake in both properties and will remain the operational manager of the two designer outlets.

'We are delighted to have completed the acquisition of these two exciting centres in an off-market transaction and, working with the operational manager McArthurGlen, we look forward to generating ongoing outperformance for our investors,' said Ian Jones, director of investment at Savills IM.

'In our view, as the importance of customer experience becomes more and more relevant, select acquisitions in the outlet sector offer opportunities to generate attractive distribution and IRR.'

'Having managed the Troyes and Roubaix designer outlets for many years, we are delighted to be partnering with Savills IM,' said Christophe Deshayes, McArthurGlen’s managing director for the UK, France and Belgium. 'We look forward to delivering continued growth for Troyes and Roubaix.'

Troyes, developed in 1995, is the largest designer outlet in France, with over 100 stores, 30,000 m2 of GLA and 1,700 parking spaces. Located 1.5 hours from Paris, the centre reaches a regional population of 7.8 million people, while local tourism attracts 2.5 million visitors every year. The centre’s brand-mix includes Armani, Guess, Hugo Boss, Maje, Nike, Polo Ralph Lauren and Tommy Hilfiger.

Roubaix, which dates from 1999, comprises 75 stores with 17,300 m2 of GLA, 1,500 parking spaces and serves a regional population of 11.5 million. Located 15 minutes from the Belgium border, local tourism attracts a further four million visitors to the area each year. Brands include Adidas, Calvin Klein, Lacoste, Levi’s, Sandro and Swarovski.

Debt was provided by Societe Generale and DWS while Savills IM was advised in Paris and London by Cushman & Wakefield, Simmons & Simmons, PWC and Savills Building Consultants.


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