Transaction / Assets Seller Buyer € MM
VIA Outlets Buys 4 European Outlet Centres, Including 1 In Sevilla
25 November 2016 – Real Estate Press
VIA Outlets, the joint venture formed by APG, Hammerson Plc, Meyer Bergman and Value Retail, has signed an agreement to acquire four outlet centres, with a total value of €587 million and an initial yield of 5.5%, in a deal that is pending authorisation by the regulators.
The outlets are located close to major cities in Germany, Portugal, Spain and Poland. This purchase increases the value of VIA Outlets’ portfolio, which comprises ten assets, to €1,100 million, in which Hammerson owns a 47% stake.
Timon Drakesmith, CFO of Hammerson Plc and Chairman of VIA Outlets’ Advisory Committee, said: “This is a rare opportunity to acquire these four outlet centres in an off-market operation”.
“The European markets are very well positioned and are continuing to experience strong sales growth, supported by improved supply and an increase in the number of tourists across Europe”.
VIA Outlets has identified opportunities to boost sales growth and revenues from the operation, through a change in the commercial mix and the implementation of various marketing and tourism initiatives.
To support the portfolio increase, the organisational structure of VIA Outlets has been improved through external hires to expand the asset management, marketing and finance teams. The estimated IRR for the assets acquired is 11% over five years. (…).
In Spain, the JV has acquired the outlet located in the north east of Sevilla, which attracts a growing number of tourists visiting Andalucía. The outlet has a surface area of 16,400 m2, and is home to 65 brands, including Tommy Hilfiger, Mango, Polo Ralph Lauren and Adidas. Its annual sales amount to €3,600 per m2. (…).
Original story: Real Estate Press
Translation: Carmel Drake