1. shopping
2. retail
3. outlet stores

Investing in
Outlets
inside:
Hammerson’s outlet fund
McArthurGlen goes to Spain
Neinver’s Zweibrücken the Style Outlets
2 outlet centers open in Brazil
A conversation with Neinver
A SIMON PROPERTY GROUP / KAEMPFER PARTNERS JOINT VENTURE
M C ARTHURGLENGROUP.COM
ASHFORD PHASE II
M C A RTH URGLEN
WE ARE DOUBLING THE SIZE OF ASHFORD DESIGNER OUTLET, LOCATED JUST 37 MINUTES FROM LONDON
FOR LEASING, CONTACT NICK BRADY AT [email protected] OR +44 (0)207 535 2338
Contents
Winter 2015
Vol. 11 No. 1
PAGE 4
PAGE 8
Inside
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PAGE 10
4 Freeport: still standing 20 years later
5 VIA Outlets Fund snaps up European outlet centers
6 A first time for everything: McArthurGlen goes to Spain
8 Two outlet centers open in Brazil
10 Spotlight on Neinver: Listen and Foresee
14 Asia: Silk Road Holdings plans further Florentia Villages;
Taipei Gloria Outlets set to open in August; FN Factory Outlets to
refurbish 3 centers; ex-Simon exec forms Asian consultancy;
Fashion House Group plans center in China
16 Europe: Galeries Lafayette joins the outlet world; Mirvac
acquires Aussie outlet center; DW Outlet opens at Royal Quays;
new tenants join Fashion House centers; The Kooples opens
at Zweibrücken; MCG sponsors Walpole luxury award;
Immelmann is named Neinver retail director; Gunwharf Quays continues to upgrade its outlet tenancy
18 European Outlet Conference: March 24 in London
Advertiser Index
Fashion House Group........................... BC
Florentia Village.................................. IBC
ICSC European Outlet Conference......... 13
McArthurGlen.......................................IFC
Neinver.................................................... 7
Zsar Outlet Village................................. 17
International Outlet Journal is a publication for the
non-U.S. factory outlet industry. Copyright © 2014
Wi nt er 2 0 1 5 I n t ernat iona l O u t l e t J ourna l
3
News Up Front
Freeport Retail:
Still standing after 20 years
The outlet company that
has weathered ups and
downs since 1994 stays
the course with diversity
and a full pipeline.
B y L INDA HUMPH E RS
E d i tor i n Chi ef
Freeport Retail, one of the
original outlet-center developers in
Europe, is on its own again following
Carlyle Group’s sale of three outlet
projects to VIA Outlets Fund for an
undisclosed price.
Although no longer part of Carlyle,
which had owned Freeport since 2004,
and not a part of VIA’s new portfolio,
Freeport will continue to manage, market and lease the Freeport Outlet centers
in Portugal, Sweden and the Czech
Republic plus work on a robust pipeline
for itself and others.
Freeport veterans Iestyn Roberts,
CEO, and Chris Milliken, commercial
director, spoke with IOJ in November
about the company’s full plate.
But first, a little background on this
20-year-old enterprise, which was founded by Sean Collidge, a larger-than-life
character who spent the 1970s manufacturing and selling tie-dyed t-shirts to
hippies on London’s Carnaby Street. By
1994, Collidge had gone from riches to
rags and back again, had left the apparel business and had formed an outlet
development company called Freeport
Leisure; that year, the company was
listed on the London Stock Exchange.
Over the next 10 years, with Roberts
and Milliken on board, Freeport’s portfolio grew to nine outlet centers: five in
England – Braintree, Castleford, Fleetwood, Hornsea and Stoke – and one in
West Lothian, Scotland, plus three in
Europe – in Alcochete, Portugal; Hate,
Czech Republic and Kungsbacka, Sweden. Freeport also marketed and leased
the site in Roppenheim, France that was
4
I n t ernational Outlet Journal Winter 2015
Freeport Retail will continue to manage the three centers acquired by VIA, including
Freeport Outlet Alcochete in Portugal (top) and Freeport Kungsbacka Designer Outlet
Village in Sweden (above).
sold to Neinver in 2009; it opened as
Roppenheim The Style Outlets in 2012.
In 2004, Hermes acquired the majority
stake in the five centers in England for
€309 million. Hermes is still the owner,
with REALM operating them. By 2007,
Collidge been dismissed from Freeport’s
board and the company was acquired for
€227.3 million by Carlyle European Real
Estate Partners.
In 2011 the developer was rebranded
Freeport Retail, with an emphasis on
third-party development, marketing,
operations and leasing.
And in late 2014, the VIA acquisition
set Freeport Retail on a fresh journey.
The standalone company starts 2015
with an outlet pipeline that includes six
phase 1 centers: two in France and one
each in Germany, Italy, Slovakia and Malaysia. All are in the planning stages except for
Freeport A’Famosa Outlet Village in Kuala
Lumpur, which is under construction.
The 180,000-sf first phase of
A’Famosa Outlet Village is scheduled to
open September 17. “We’re two minutes
from the golf resort and just 30 minutes
from Malacca, which is a key tourist destination,” Milliken said. “It’s a ready-made
catchment – 13 million tourists come to
Kuala Lumpur annually and 9.3 million
people live within a 90-minute drive.”
VIA Outlets Fund snaps up five European outlet centers
A new fund led by London-based
retail developer and financier Hammerson has acquired five outlet centers in Europe, creating a 1.8 million-sf
portfolio. VIA Outlets Fund, in which
Hammerson holds a 47 percent share,
made the following purchases:
4 Stable International’s Batavia Stad
Fashion Outlet, near Amsterdam,
283,500 sf
4 TK Development/LMS Outlet’s
Fashion Arena Outlet Center in
Prague, 270,400 sf
4 Carlyle Group’s Freeport Outlet
Alcochete in Lisbon, 807,000 sf
4 Carlyle Group’s Freeport Kungsbacka Designer Outlet Village, 20
minutes south of Sweden’s second
largest city, Gothenburg, 162,000 sf
4 Carlyle Group’s Freeport Excalibur
in Hate, Czech Republic, within a half
mile of the Austria border and midway
between Vienna and Prague, 232,000 sf
Individual purchase prices for the
centers haven’t been disclosed. In a
September 25, 2014 conference call
with analysts, Hammerson CFO Timon
Drakesmith explained that the fund
was created to give the developer
access to the outlet sector and its
double-digit growth. He added that
Hammerson’s longstanding relationship (a 38 percent ownership) with
outlet developer Value Retail has paid
off handsomely.
“VR’s contribution to our book
value has quadrupled in less than
five years and is gradually heading towards 20 percent of our net
assets,” he said. “We have a major
new outlet portfolio to build and this
will sit alongside Value Retail Europe.
Batavia Stad Fashion Outlet
We’re seeking to exploit our competitive advantage and knowledge in the
outlet space and we’ve joined up with
our partners, Value Retail, APG and
Meyer Bergman, to create a significant
outlet platform.”
The fund will acquire between six
and 10 existing outlet centers with
potential and upgrade them from Cplus or B-minus centers into B-plus or A
centers, he said. Hammerson will also
continue to invest in Value Retail, including contributing €25 million to help
with extensions at Bicester Village in
England and Kildare Village in Ireland,
and about €13 million for an equity
stake in VR’s Shanghai Disney project.
Sven Buchsteiner, a Frankurt-based
retail researcher with CBRE, told IOJ
that the European economy has created a market for investors.
“The devaluation of the current
assets in Southern Europe offers
interesting opportunities to get a
bargain on good centers with yields
above 7 percent net,” he said. “I
think Hammerson wants to benefit
from this trend without taking the
risks that development-orientated
investors, such as Henderson or Irus,
are taking in their partnerships with
McArthurGlen or Neinver.”
Hammerson’s acquisition strategy
is understandable, considering the
developer had a rough introduction
to the sector with its only phase 1
project. B5 Designer Outlet, which
opened near Berlin in 2000, never
caught fire with shoppers and was
eventually sold to McArthurGlen
and Henderson Global Investors. In
June 2009, the new owners opened
Designer Outlet Berlin on the precise
site of the former B5.
“Outlet projects are like buses,” he
said. “Nothing on the horizon and suddenly you’ve got three.” He was referring to two other projects planned for
Kuala Lumpur, one being developed by
Sepang International and the other by
Horizon Group Properties.
Another Freeport veteran, Richard
Broadhead, is now based in Malaysia overseeing the A’Famosa project, which was 65
percent leased as of IOJ press time.
The developer has also taken on asset
management of Miller/TK Developments’ Premier Outlets Ringsted, which
is 65 km south of Copenhagen.
“Ringsted is a real turnaround story,”
Milliken said. “We’ve improved the
center’s ambience and appeal and
we’re energizing the tenants. In smaller
countries, there are more licensees and
franchisees – and you really have to
work with them to remind them to keep
their inventories fresh and full.”
Roberts said that 41 percent of the
tenants are licensees or franchisees, but
the outlets are mono-branded.
“This center is the only outlet center in
Denmark that’s true to the outlet proposi-
tion, with no combined brands,” Roberts
said. “The licensees and franchisees often
operate just one outlet store, so it isn’t the
first thing they think about. And the inventory is almost entirely overstock, with
not much that’s made for the outlets.”
Occupancy at Ringsted has improved
to 81 percent from 49 percent since
Freeport took over; new tenants include
Desigual, DK Companies, Hugo Boss,
Samsonite and Super Dry.
“We’re proud of what we’ve achieved,”
Roberts said, speaking of Ringsted, but
also of 20 years in the outlet business. c
Wi nt er 2 0 1 5 I n t ernat iona l O u t l e t J ourna l
5
Center Opening
A first time for everything:
McArthurGlen goes to Spain
Europe’s busiest outlet
developer forges a JV
with Sonae Sierra for
a new center in Spain’s
Costa del Sol.
Sonae Sierra and McArthurGlen
have joined forces to develop an outlet
center in the southern Spanish city of
Málaga. The €115 million McArthurGlen
Designer Outlet Málaga will have a first
phase of 17,000 m2 and a second phase
of 13,000 m2. Construction is scheduled
to begin in the latter half of this year, with
the opening scheduled for 2017.
Although McArthurGlen has developed
more than 20 outlet centers in Europe
since 1995, the project in Málaga marks
the developer’s first entry into Spain.
The center will be adjacent to the Plaza
Mayor Leisure Park & Shopping Centre,
which is owned by the Sierra Fund and
managed by Sonae Sierra. Plaza Mayor
is Málaga’s most-visited
shopping center with 143
stores and restaurants and
3,200 parking spaces. The
center had nearly 9 million
shoppers in 2013 and
registered more than €95
million in sales.
The site of Málaga
Designer Outlet, just off
the A7 motorway linking
Málaga to Marbella, is
within a 90-minute drive
of nearly 3 million residents. It is just three minutes by train from
Málaga’s international airport, which serves
13 million passengers a year. Some 10 million tourists visit the Costa del Sol region
each year, with Málaga being a key arrival
point for them.
“This major project is part of Sonae
Sierra’s strategy of growth and enhances
the presence of the company in the
Spanish market,” Fernando Guedes de
Oliveira, CEO of Sonae Sierra, said.
“With this initiative, Plaza Mayor rein-
NEW CENTerS
Center
City location
Country GLA m2 Start of Opening
works
Vancouver Airport
Vancouver
Canada 22,000
Q1 2014 Q2 2015
Vancouver Airport Phase 2 Vancouver
Canada 15,000
tbd 2016/17
ProvenceMarseille France25,000
2015 2016
Ghent
Brussels/ Bruges
Belgium 32,000 2014/2015
2017
Remscheid Cologne/Düsseldorf Germany 26,500
2016
2017
Istanbul – European side Istanbul
Turkey 35,000
2015
2016
Istanbul –Asian side
Istanbul
Turkey 35,000 2015
2016
Málaga
Málaga, Andalusia
Spain
30,000
2015
2017
TOTAL 220,500
EXTENSIONS TO EXISTING CENTeRS
Center
Nearest city Country
GLA m2
Swindon
Neumünster
Ashford
Serravalle
Noventa de Piave
Roermond Parndorf
La Reggia
-
Hamburg
London
Milan
Venice
Düsseldorf
Vienna
Naples
UK
Germany
UK
Italy
Italy
Netherlands
Austria
Italy
TOTAL
4,700
7,000 9,300
11,000
6,000
15,000
5,000
7,500
65,500
Start of Opening Phase
works
Q4 2013
Q3 2014
2015
2015
2015
2015
2015
2016
Q2 2015
Q4 2015
2016
2016
2016
2016
2016
2017
3
2
2
5
4a
4
5
3
TOTAL OF NEW DESIGNER OUTLET SPACE UNDER WAY OR IN ADVANCED PLANNING
= 286,000 square metres (over 3 million square feet)
6
I n t ernational Outlet Journal Winter 2015
forces its position as a commercial and
leisure benchmark in the Málaga area. In
addition, it enhances the quality of its
retail offer.”
Julia Calabrese, CEO of McArthurGlen
Group, added that Málaga Designer Outlet will become one of MCG’s flagship
centers. “The location offers everything
we look for when creating a new designer
outlet: It is easily accessible, with strong
tourism potential and fashion-loving customers within the local catchment.”
Sonae Sierra owns 46 shopping centres
in 14 countries on four continents. The
market value of the centers, which are
in Portugal, Algeria, Azerbaijan, Brazil,
China, Colombia, Germany, Greece, Italy,
Morocco, Romania, Russia, Spain and
Turkey, is more than €5.9 billion. The
company also manages and/or leases 82
shopping centers totaling 2.6 million m2
with more than 8,300 tenants. Sonae Sierra has six projects under development,
including three for third parties, and has
four additional planned projects.
McArthurGlen Group is jointly owned
by Simon, the world’s largest owner of retail and premium outlet properties, and the
Kaempfer Partners. McArthurGlen Group
has developed nearly 600,000 m2 of outlet
space, with a current value of more than
€5 billion. MCG manages 20 McArthurGlen Designer Outlets across eight countries: Austria, Belgium, France, Germany,
Greece, Italy, the Netherlands and the
UK. MCG is in the process of developing
seven outlet centers – in Belgium, Canada,
France, Germany, Turkey (2) and the one
in Spain. The developer is also expanding
eight of its existing outlet centers. c
neinver.com
Roppenheim The Style Outlets
Experience, Profitability and Future
Because we are committed to a quality shopping experience based on location, architectural
design, brand mix and services. The Style Outlets and FACTORY outlet centres offer choices that
are functional and efficient while remaining attractive to shop operators and visitors.
Because we have developed marketing and leasing strategies that ensure successful results,
increasing foot traffic in 2014 by 8% and total sales by 11% compared to 2013.
Because we develop and manage our outlet centres using principles of economic and environmental
sustainability.
We are creating the future of retail in Europe.
311,600 SQ.M. 1,500 SHOPS SPAIN GERMANY FRANCE ITALY POLAND PORTUGAL
Center Openings
Two outlet centers
open in Brazil
Brazil is shaping up as
a new outlet frontier,
as seen by the openings in late 2014 of
two outlet projects,
Catarina Fashion Outlet near São Paulo and
OFF Outlet Fashion
Fortaleza on Brazil’s
northeast coast.
In Fortaleza, on Brazil’s northShoppers crowd the grand opening of Brazilian brand Handara’s outlet store at OFF.
OFF Outlet Fashion Fortaleza tenants
AD
Artex
Asics
Athos
Brasolin
Buckman
Bunny’s
Cacau Show
Calvin Klein
Capodarte
Carment Steffens
Casa das Calcinhas
Chili Beans
Clikks
Colombo
Cori
Crocs
DLT
Ellus
Ferrovia
Gap
Handara
Kipling
Lacoste
Le Lis Blanc
Levi’s
LG
MMartan
Maresia
Marilia Marques
Meia Sola
New Balance
Nike Factory Store
NK30
Oakley
Penguin
Pittsburg
Planet Girls
Play Size
Polishop
Polo USA Polo Wear
Richards
Sabor Caseiro
Salinas
Sawary
Siberian
Size 8
Smolder
TNG
UV Action
WLF
Yap Temakeria
ern coast, São Paulo-based Varicred do
Nordeste opened OFF Outlet Fashion
Fortaleza on November 5.
The 162,000-sf center opened with
53 tenants in a village format with an
air-conditioned dining area and about
1,300 parking spots. The $30 million
project, with capacity for 90 retailers, is
the first outlet center in Brazil’s Ceará
state, and the seventh outlet center in
the country.
Varicred do Nordeste contracted with
Lumine Soluções em Shopping Centers
to manage the project, and ABOUT to
handle leasing. The companies promoted the opening with an aggressive
campaign including billboards, print,
Brazilian Outlet Centers
Centermarketdeveloper
GLA sf
GLA m2
Premium Outlet São Paulo São Paulo
Senpar Terras/General Shopping 194,400
18,000
Só Marcas Outlet
Minas Gerais
Açores Empreendimentos
43,200
4,000
BH Outlet Plus
Minas Gerais
Private investors
43,200
4,000
Premium Alexânia
Goiás
General Shopping
178,200
16,500
(Outlet Premium Brasilia)
Platinum Outlet SUL
Rio Grande du Sol Construtora Sao Jose/Cisplan 215,300
20,023
Premium Salvador
Bahia
General Shopping
162,000
15,000
Outlet Fashion Fortaleza Ceará
Varicred Nordeste
162,000
15,000
Santa Catarina Outlet
Camburiu
JHSF
220,000
20,460
TOTAL
1,218,300112,983
8
I n t ernational Outlet Journal Winter 2015
Open
2009
2010
2011
2012
2013
2013
2014
2014
Catarina offers outlet shopping in a
country setting less than an hour from
teeming São Paulo.
radio and TV, all tied to social media.
They project up to 4 million annual
visitors to the center and annual sales
volume of $120 million.
Fortaleza, the capital of Ceará, is the
fifth-largest city in the country, with a
metro-area population of 3.6 million.
OFF is about nine miles southwest of
the city center on Highway BR-020 by
the intersection of Route 222.
Near São Paulo, JHSF opened its first
outlet center, Catarina Fashion Outlet, on
October 18. The 220,000-sf project is 40
miles west of central São Paulo, Brazil’s
largest city with a metro population of
more than 20 million. The site, part of
a mixed-use development, is on Castello
Branco Highway.
JHSF said Catarina Fashion Outlet was
98 percent leased by early fall, and threequarters of the 100 tenants opened their
doors in time for the opening. c
Catarina Fashion Outlet tenants
AD Lifestyle
Adidas
Aleatory
Anacapri
Antix
Any Any
Arezzo
Armani Outlet
Artefacto
Blue Beach
Bo.Bo
Bobstore
Brooksfield
Buckman
Burberry
Calvin Klein
Canal
Capodarte
Carlos Miele
Carmen Steffens
Carolina Herrera
Cecilia Dale
CNS
Cori
Cris Barros
Crocs
Daslu
Democrata
Deposito Santa Fe
Dumond
Dwindle
Ellus
Emme
Expand
Farmais
Fast Frame
Gap
Globe
Guess
Herchcovitch
Hering
Lost
Luigi Bertolli
Mandi & Co.
MCD
Michael Kors
Mixed
Morena Rosa
Natuzzi Editions
Nautica
Nike
Noir Le Lis
Ogio
Optica Sella
Osklen
Polishop
Polo Wear
Puket
Relojoaria Brasolin
Richards
Rimowa
Salinas
Schutz
Serta Colchoes
Sidewalk
Spicy
Tigresse
Tip Top
Tommy Hilfiger
Tory Burch
Track & Field
Trousseau
VR
Yachtsman
Wi nt er 2 0 1 5 I n t ernat iona l O u t l e t J ourna l
9
Spotlight on Neinver
Neinver’s credo:
Listen and foresee
Europe’s 2nd largest
outlet developer shares
its philosophy in its
first media interview,
exclusive to VRN.
B y LI N DA HU M P HE RS
E d i to r i n C h i e f /Di re c to r
With 15 outlet centers totaling
Neinver’s outlet architecture ranges from sleek enclosed buildings like Factory
Krakow in Poland (above), to modernistic open-air centers like Vicolungo the Style
Outlets (top) in Italy.
10
I n ternational Outlet Journal Winter 2015
more than 3 million sf up and running, and
at least three more outlet projects planned,
Spanish developer Neinver is the secondlargest outlet-center developer in Europe
after McArthurGlen.
Every retail developer has an interesting
history, but probably none has carved its own
path in quite the same way as Neinver.
Starting with its inception in 1969 in the
famed La Rioja wine region of Spain, the
family’s first commercial enterprises involved
building and managing warehouses for local
agricultural producers.
Founder Jose Maria Losantos y del Campo
chose Neinver for his company name, a contraction of the Spanish phrase for “business
and investments” or “negocios e inversiones.”
By 1984, he decided the time had come to
move the firm to Madrid from its original home
in the ancestral city of Calahorra.
Within the next eight years, Neinver
developed one of the first corporate parks
in Spain, Madrid’s Parque Empresarial de
San Fernando, which today has 11 buildings, tenanted by more than 100 companies
in 775,000 sf. The complex is adjacent to
Barajas Airport, an essential site for Spain’s
business community. And the project was
essential to Neinver’s future.
“It gave birth to our asset management
business,” said managing director Daniel
Losantos, a son of the founder. “As a company we built and strengthened this skill as
a way to differentiate from our competition
in every sector we operated. And now, as-
Roppenheim the Style Outlets opened in 2012 near Strasbourg, France, earned Best Factory Outlet Centre honors last year in Cannes.
set management is key for us.”
In 1996, diversifying again, Neinver launched Factory Madrid Las
Rozas, Spain’s first outlet center as a
sleek, airy, enclosed building, quite
different from other outlet projects’
village-style architecture. Melding its
established real estate savvy to the
unique needs of its new retail clients
– the brands themselves – Neinver set
about to perfect, then export, its own
outlet-center concept.
Since then Neinver has developed
outlet centers at a steady pace, opening
four more FACTORY branded centers
in Spain, five in Poland and one in Portugal, all in that distinctive mall design.
Along the way, Neinver also acquired
two open-air centers in Italy and one in
Germany, and, in 2012 in France, the
developer opened its first new-construction, village-style center.
Since 2009, Neinver has rebranded
eight of its outlet centers to The Style
Outlets to signal a more upscale tenant
mix. And Neinver continues to experi-
ment with fresh modes of improving
the shopping experience. For instance,
Factory Krakow in Poland is attached
to a big-box mall called Futura Park
that includes a grocery store, a wide
assortment of services and a range of
full-price retail.
Testing the waters, making changes
and trying something new – that’s all a
part of what Daniel Losantos calls “the
Neinver DNA.”
“If I had to define my company in one
(Continued on page 12)
Neinver Outlet Portfolio
Center
City
Roppenheim The Style Outlets
Strasbourg (Roppenheim)
Zweibrücken The Style Outlets
Zweibrücken
Castel Guelfo Outlet
Bologna
Vicolungo Outlets
Milan (Novara - Vicolungo)
FACTORY Krakow
Krakow
FACTORY Poznan
Poznan (Lubon)
FACTORY Warsaw Ursus
Warsaw
FACTORY Warsaw Annopol
Warsaw
FACTORY Wroclaw
Wroclaw
Vila do Conde The Style Outlets
Porto
Coruna
The
Style
Outlets
Culle redo (La Coruna)
˜
˜
Getafe The Style Outlets
Madrid (Getafe)
Las Rozas The Style Outlets
Madrid (Las Rozas de Madrid)
San Sebastián de los Reyes The Style Outlets Madrid (San Sebastián de los Reyes)
Sevilla The Style Outlets
Sevilla (San José de la Rinconada)
15 outlet centers
Country
France
Germany
Italy
Italy
Poland
Poland
Poland
Poland
Poland
Portugal
Spain
Spain
Spain
Spain
Spain
6 countries
GLA(sf) Opening
292,787
2012
326,100
2001
263,724
2004
368,137
2004
240,043
2011
159,311
2007
145,317
2002
180,294
2013
148,546
2006
312,163
2004
138,858
2011
226,049
1999
103,336
1996
256,189
2006
176,533
2001
3,337,387 Source: Value Retail News
Wint er 2 0 1 5 I n t ernat iona l O u t l e t J ourna l
11
Spotlight on Neinver
(Continued from page 11)
word, innovation would be it,” Losantos
said. “Complementary terms would be
specialization and diversification.”
These qualities helped Neinver navigate the 2008-09 financial crisis. In 2007,
anticipating the difficulty of obtaining
financing, Neinver launched the Irus European Retail Property Fund, which today
has more than $1.4 billion in assets.
Because of that foresight and action,
Neinver is well-positioned today, even as
European economies still struggle toward
full recovery. Losantos also credits the
outlet industry for his company’s comfortable position.
“I must say that the outlet concept
works even better in recessionary times,”
Losantos said. “For the last five years,
shopper visits and sales have grown by
double digits in our outlet centers. The
fact is, a trend that comes about during a recession often becomes a normal
consumer habit. People who started
shopping at outlets during the recession
will keep on shopping when the economy
improves. I can give you some data: The
frequency-of-visit ratio in our outlet centers is currently 15 times per year, up from
11 times per year four or five years ago.”
Losantos observed that Neinver still
does significant business beyond the outlet sector. In addition to the outlet properties, the developer just agreed to acquire
and manage two KKR non-outlet assets
in Spain, and the developer’s current portfolio also includes seven traditional retail
centers totaling 2.7 million sf, an unusual
diversification for a retail developer (most
12
I n ternational Outlet Journal WINTER 2015
Neinver acquired Zweibrücken the Style Outlets in 2009; the center, near Frankfort,
opened in 2001.
have a heavier concentration of traditional centers). But, again, Neinver is known
for blazing its own trail.
“More than 60 percent of our income
comes from our properties and almost 40
percent of the income from the management business,” he said. “We have
developed a unique model that makes
us strategic partners in this sector. Our
expertise makes us suitable partners for
both investors and brands.”
Looking ahead, Neinver’s pipeline
includes outlet projects in Barcelona,
Amsterdam and in Werl, Germany,
which is an hour east of both Düsseldorf and Cologne.
“We’ve always tried to anticipate
and address the needs of the market,”
he said. “In the 1970s, we built warehouses for agricultural producers and
as they grew successful we responded
by developing and managing a string of
industrial parks. It was a sound business
model but we wanted to deliver turn-key
projects, so we kept working at it until
we were able to do that.
“So that was how we started,” Losantos said, “and it’s been that way ever
since – listen and foresee. Adapt and
provide. This is still the essence of the
company. Success is not an accident; it is
a decision.” c
ICSC European Outlet
Conference
24 March 2015
Business Design Centre, London, United Kingdom
In Association with:
Outlet Sector Delivering Top Returns
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DEAL MAKING
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Asia Briefs
FN Factory Outlets
to refurbish 3 centers
Thai owner/operator FN
Factory Outlet is investing €2.4 million in
renovations of three of its outlet centers
in Pak Chong, Hua Hin and Sri Racha
(Chon Buri). The center in Pak Chong
will expand by about one-third, growing to 86,000 sf. The company, a unit of
Fly Now Group, owns and operates four
other centers in Thailand in Phetchaburi,
Sing Buri, Kanchanaburi and Pattaya.
Somchai and Preecha Songwatana
co-founded Thai fashion apparel brand
Fly Now in 1983. Today it is one of the
reigning fashion houses in Thailand,
with Somchai at the helm. Preecha’s son
Benyiam Songwatana has become CEO
of the FN Factory Outlet division, which
began developing outlet centers in 1999.
The main outlet center developer
competing with FN is another Thai
apparel and textile producer, Pena
House Group, which operates Outlet
Mall Company. Its nine properties are
branded as Outlet Villages Krabi and
Samui, Outlet Mall Pattaya, and the Premium Outlets of Ayutthaya, Cha-Am,
Khao-Yai, Pattaya Avenue, Phuket and
Udon-Thani.
John Klein forms
outlet consultancy
John Klein,
who retired as
CEO of SimonPremium Outlets
in June 2014, has
launched a new
business, International Outlet
Consultants. Klein
John Klein
has worked in the
outlet sector for nearly 20 years.
As the Premium Outlets CEO at Si-
mon, he was responsible for the growth
of the global outlet platform, a portfolio
of 81 centers totaling 33 million sf, including 15 international centers in Japan,
Korea, Malaysia, Canada and Mexico.
He helped steer joint ventures with such
partners as Calloway REIT, Genting
Group, Mitsubishi Estate Co., Shinsegae
Co. and Sordo Madaleno & Associates.
The new consultancy focuses on international outlet growth, but Klein is also
working on non-outlet projects in the U.S.
Fashion House Group
plans center in China
International outlet center
developer Fashion House Group has
announced plans for its first outlet
project in Asia: Fashion House Outlet
Centre Guiyang in the Guizhou province in southwestern China. Guiyang is
the capital of Guizhou.
Taipei Gloria Outlets set to open in August
A joint venture of The Outlet!
Company and Gloria Hotel Group
have started construction on the
220,000-sf phase 1 of Gloria Outlets in greater Taipei, the capital
of Taiwan. The opening is set for
August 2015. The developers plan
to start construction on phase 2 by
February, with an opening target of
December 2015.
Gloria Outlets, expected to build
out at 590,000 sf in four phases,
is in Qingbu, a 45-minute drive
from central Taipei. The site is on
Local Road 31 just south of the
interchange with Airport Expressway (Highway 2). The project is
directly connected to the existing
high-speed rail network and will
also connect to an under-construction rail link to the main airport,
Taoyuan International. The center
will include 2,500 underground
parking spaces. More than 9 million
people reside within 40 miles of
Gloria Outlets in the dense TaipeiKeelung-Taoyuan conurbation of
northern Taiwan.
Gloria Hotel Group is based
in Taipei, and TOC has offices in
14
I n ternational Outlet Journal Winter 2015
TOC and GHG, developers of Gloria Outlets in Taiwan, have entered a 50-year
development and management partnership.
Taipei, Shanghai and Hong Kong. The
duo has launched a 50-year development and management partnership.
TOC’s top executives, Daniel Kelly,
president, and Anjelica Manalo, VPfinance and administration, were
previously with Simon (then Simon
Chelsea Premium Outlets) in its Asian
ventures. TOC currently handles the
leasing and management of three
joint ventures in mainland China:
Mega Mills in Shanghai, open since
January 2013; Nanjing East Outlets,
set to open Jan. 31, and Wuhan
Riverfront Outlets, targeting a late
2015 opening.
The Florentia Village model embues Chinese outlet shopping with an Italian Renaissance ambience.
The center will be a 377,000-sf retail
component of an 81-million-sf mixed-use
development. The overall development will
include more than 20,000 residential units,
schools, offices, hotels and other amenities.
The site for the project is at the junction of Qingzhen City highway and the
Guiyang ring road, less than 20 miles
from Guiyang Longdongbao International Airport, which serves more than 7
million passengers annually. Guiyang has
a population of more than 4.3 million.
Silk Road Holdings
plans further
Florentia Villages
Silk Road Holdings is ready to roll
out its luxury outlet-center concept to
new markets across China. The developer, a joint venture that includes the
Italian conglomerate Fingen, opened its
first outlet center in China in 2011. Florentia Village Jingjin Luxury Designer
Outlet, 20 minutes from Beijing, opened
at 195,000 sf but has grown with two
expansions to 538,000 sf.
SRH is now poised to add six more
outlet centers over the next three years
in China. This year the developer will
hold a grand opening for its 603,000-sf
Florentia Village Pudong in Shanghai
on Jan. 25. It will host its next ribbon
cutting this summer for the 484,000-sf
Florentia Village Foshan. The center is
across the Pearl River (Zhu Jiang) from
Guangzhou in the south of China.
Maurizio Lupi, managing director of
RDM Asia, Fingen’s real estate development company, told IOJ that his
team plans opening dates of 2016 for
Florentia Village projects in Chengdu
and Wuhan, and 2017 for Qingdao and
Chongqing, for a total of seven outlet
centers across China.
Throughout China fewer than a dozen high-quality outlet centers are open,
but Lupi expects that number to grow
exponentially in the next five years.
“China could have maybe 50 major
luxury outlet centers by 2020,” he said.
He also foresees major outlet developers opening centers in Southeast Asia,
even in Thailand and Vietnam.
The Florentia Village model combines classical Italian architecture and
Italian luxury brands, such as Armani,
Ferragamo, Frette, Gucci, Inniu, Lavazza, Liu Jo, Pal Zileri, Prada, S.D. Spontini, Tod’s, Versace and Zegna. Florentia
Village Jingjin hosts some first-in-China
stores, such as Bulgari, Etro and Fendi.
Along with these, other global fashion
brands include Bally, Coach, Feraud,
Lacoste and Theory. Upscale Chinese
brands include Elegant Prosper, Jorya,
Ports and Shanghai Woo.
The formula has worked well at Florentia Village Jingjin, which met its goal
of 4 million shoppers in 2014. Sales of
about $700 psf are slightly exceeding
the targeted rate, Lupi said.
Silk Road Holdings Fingen operates businesses in real estate, finance
and fashion merchandise sourcing and
retailing. It found an able partner for
its Asian retail real estate goals in the
Italian developer RDM; together the
companies formed the corporate entity
Silk Road Holdings with Fingen as
shareholder and RDM as local manager and developer. The partners have
tapped three investment firms to help
underwrite the Florentia Village projects: Gaw Capital Partners, Henderson
Global Investors and Waitex.
Silk Road Holdings includes Fingen
Group, China Outlet Mall, Gaw Capital
Partners, Waitex and an institutional investor from the U.S. SRH is advised by RDM
Asia and Henderson Global Investors. c
Wint er 2 0 1 5 I n t ernat iona l O u t l e t J ourna l
15
Global Briefs
Galeries Lafayette
joins the world
of outlet retailing
French department store Galeries
Lafayette opened its first outlet in
September at One Nation Paris in
suburban Les Clayes sous Bois. The
8,600-sf Galeries Lafayette Outlet
offers past-season goods by major
brands at discounts as deep as 50 percent off. Among the brands carried
are Azzaro, Balenciaga, Chloé, Iro,
Molly Bracken, Vanessa Bruno – and
some of the Galeries Lafayette’s own
hosiery lines.
According to Fashionmag.com, all
the inventory was previously offered
in the chain’s 60 stores, and though
no brand refused to join the outlet,
some have asked for more time to
study the matter.
Olivier Bron, head of Galeries Lafayette’s store network, told the website that the retailer would consider
opening more outlet stores.
“We have not planned other similar
openings at this time,” he told fashion-
Galeries Lafayette, which operates 60 department stores worldwide, is testing the
outlet concept.
mag. com. “But we have not excluded
a possible roll out of this retail format
beyond the Paris region or abroad…
This store is a real test for us.”
Bron added that the outlet concept has become a powerful business
model for retailers and that consumers are clearly enthusiastic about the
concept.
One Nation Paris, which was developed by Catinvest in partnership with
Advantail, opened in December 2013.
DW Outlet opens
at Royal Quays
Designer Warehouse Outlet opened
its first door in the North East region
of England, opening in November at
Royal Quays Outlet Centre in Newcastle, North Shields. The store is the
chain’s fourth. DWO is a multibrand
retailer that carries Bench, Firetrap, Jack
& Jones, Cross Hatch and Lambretta.
Mirvac acquires Aussie outlet center
Abacus Property Group has entered into an
agreement to sell Birkenhead Point Outlet Centre
and Marina in Sydney, Australia to Mirvac Group
for €220 million. Sydney-based Abacus acquired
the 225,000-sf center in 2010 for €125 million
in an investment partnership with South Africabased Kirsh Holdings Group. The waterfront center opened in 1988. Tenants include Calvin Klein,
Corningware Corelle & Pyrex, Diana Ferrari, Furla,
Hugo Boss, Lee Wrangler, Levi’s Outlet, Merrell,
Oakley Vault, Polo Ralph Lauren, The North Face
and Van Heusen.
Mirvac Group is a Sydney-based real estate investment and development firm. Its retail division
comprises 13 shopping centers mainly in urban
locations in eastern Australia, with a total GLA of
about 3 million sf. Birkenhead will be its first outlet
center.
Susan MacDonald, Mirvac group executiveretail, said the acquisition will help the company
“continue to remix existing tenancies, with an
emphasis on designer and luxury brands.”
Birkenhead brings several such tenants into
the Mirvac portfolio for the first time, including
Calvin Klein, Hugo Boss, Kathmandu and Polo
Ralph Lauren.
16
I n ternational Outlet Journal Winter 2015
Birkenhead, located in an affluent area of Sydney, is the first outlet
center in the Mirvac retail portfolio.
Open since 1996, the 137,000-sf center
is owned and operated by North Shields
Investment Properties. Brian Oakwell &
Co. handles leasing. Among the center’s
50 tenants are Clarks, Collectables, Gap
Outlet, Mountain Warehouse, M&S Outlet and Nike Factory Store.
country manager for Northern Europe.
Previously he held retail and management
positions in the German air travel industry. Immelmann also previously worked
for the WWF World Wildlife Fund and
was active on sustainable development
issues with the European Commission.
Immelmann is
named Neinver
retail director
Gunwharf Quays
continues upgrade
of outlet tenancy
Neinver has appointed Thomas Immelmann retail director, responsible
for all European
leasing and retail
projects, a strategic role reporting
directly to Barbara
Topolska, COO.
He will also suImmelmann
pervise transnational
customer management and the international positioning of the company in the
tourism segment. Immelmann joins Neinver from McArthurGlen, where he was
At Gunwharf Quays, Land Securities has recently added Mint Velvet,
Asics, Coast, Watch Station, Musto,
Pret a Manger and Pearl Izumi. The
324,030-sf outlet center, which
opened in 2001, has benefited from
a 30 percent change in tenant mix
over the last 24 months. Among the
newer tenants are Tommy Hilfiger,
All Saints, Ugg and Radley.
Bikewear brand Pearl Izumi opened its
first outlet store in the UK on November 1. The 1,470-sf store mainly stocks
previous-season goods sourced through
the brand’s designated distributor in the
country, performance sports gear merchant Madison. Pearl Izumi’s first European outlet store opened in Valkenburg,
Netherlands in April 2011, and it now
operates outlets at Fashion Outlet Parndorf (Austria), One Nation Paris and a
standalone store in Majorca. The brand
operates 14 outlet stores in the U.S.
Pearl Izumi USA is the fashion subsidiary of the Japanese bicycle component manufacturer Shimano, which was
founded in 1921. (The word izumi in
Japanese means “clear water” and the
combined name translates as “fountain
of pearls.”) Pearl Izumi USA is based in
Louisville, Colo.
The Kooples opens
at Zweibrücken
The Style outlets
French fashion brand The Kooples
opened its first outlet store on December 6 in a 1,570-sf space in Zweibrücken (Germany) The Style Outlets, owned
and operated by Neinver. The Kooples
(Continued on page 18)
On the EU-Russian border
Over 8 million Russian tourists enter Finland every year, to spend more than
€1.2 billion in shopping.
That’s why Zsar Outlet Village is located right on the biggest border crossing point in
Finland – just 500 metres from the customs.
Zsar Outlet Village. The easiest way to reach millions of Russian shoppers from the EU.
Now leasing.
Z S A R . F I
Wint er 2 0 1 5 I n t ernat iona l O u t l e t J ourna l
17
Global Briefs
European Outlet Conference: March 24 in London
The 10th Annual ICSC European Outlet Conference
is just weeks away! This must-attend, fact-packed, oneday event will be Tuesday, March 24 at the Business
Design Centre in London.
The theme for the 2015 conference, which is sponsored by ICSC and the International Outlet Journal, is a
very timely “Delivering Top Returns.”
As always, retailers attend for free!
Attendees will hear speakers on a variety of outlet topics, plus they’ll enjoy those important networking breaks
throughout the day.
Filip Helssen, managing director of Manage Your Media, will
address the audience on brand innovation and social media.
The full day of sessions will include these topics:
(Continued from page 17)
was founded in Paris in 2008; the outlet
store will offer luxury apparel, accessories and footwear for men and women.
Other tenants at the 326,100-sf center
that will complement Kooples include
Abercrombie & Fitch, All Saints, Diesel
and Rich & Royal.
Fashion House CEE
adds new brands
In Russia, the designer brands Versace
Collection and Blumarine opened stores
on Oct. 23 at Fashion House Outlet
Centre Moscow. Brendon O’Reilly,
managing director, Fashion House
Group, said the pair of new stores is
expanding the Red Carpet Alley con-
Trends and Expectations
Retail Innovation and the Multi-Channel Challenge
l Top 10 Investors’ Report
l Looking Ahead 10 Years
l Technology for Investors, Retailers, Landlords
This year’s added bonus:
ICSC Retail Connections is taking place the next day
at the same venue. Attend both events in one trip to
London! For more information, contact Rory Credland at [email protected], +44 20 7976 3105 or Beri Kockaya at
[email protected], +44 20 7976 3108. For exhibit and sponsorship opportunities, contact Sally
Stephenson at [email protected], or +1 847 835 1617.
l
l
cept area at the 420,000-sf center.
“This part enjoys big interest from
both customers and business partners
and further leases are under negotiations,” O’Reilly said.
Red Carpet Alley features luxury
brands such as Baldessarini, Bea Yuk
Mui, P.A.R.O.S.H., Moreschi and
Zanotti. The center, which opened in
June 2013, is adjacent to Sheremetyevo
International Airport, about an hour’s
drive from central Moscow.
Additionally, VF will open three contiguous stores in Fashion House Outlet
Centre Moscow – the retailer’s first outlet
doors in Russia. The VF brands Lee,
Wrangler and Vans will lease a total of
5,400 sf. Oleg Oleynikov, VF development director for CEE, said those stores
will be joined by two more VF brands
Versace Collection has opened in the luxury section of Fashion House Outlet
Centre Moscow.
18
I n ternational Outlet Journal Winter 2015
when the center’s phase 2 is completed.
In Romania, three tenants opened in
November at Fashion House Outlet Centre Bucharest West Park. Guess opened its
first outlet door in the country, a 1,730-sf
store. Italian jewelry maker Cielo Venezia
1270 also opened its first Romanian store,
while Italian footwear brand Napoleoni
debuted in a 1,860-sf space. The 220,000sf center opened in 2008.
The center is 30 minutes west of
downtown Bucharest, near the junction
of Highway A1 and the ring road. Tenants
include Adidas, Champion, Ecco, Mango,
Puma, Reebok, Samsonite and Tom Tailor.
MCG sponsors
Walpole luxury
brand award
McArthurGlen sponsored the International Luxury Brand award at the 13th
annual Walpole British Luxury Awards,
held November 3 at the Victoria &
Albert Museum in London. Shaeren
McKenzie, group marketing director,
MCG, presented the award to Bottega
Veneta. The competing nominees were
Celine, Tom Ford, Valentino and Zegna.
Walpole was founded in 1990 by a
consortium of leading UK companies.
The group each year bestows awards in
11 categories including design, advertising, service and social responsibility.
Nominees are chosen for having pushed
the boundaries in luxury and excelled
in quality, design, craftsmanship and
service. This year’s ceremony also saw
Alexandra Shulman, editor of British
Vogue, present the Lifetime Achievement Award to Joan Burstein, founder
of the London boutique Browns. c
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