Neinver reorganises portfolio

Retail & leisure
EUROPE Neinver, one of the leading investors in outlet centres, has made major changes to its portfolio. VIA Outlets, a joint venture company of APG, Hammerson, Meyer Bergman and Value Retail, has signed a contract to buy four European centres for EUR 587 mln, including Factory Wrocław in Wrocław.

Factory Wrocław, which was formerly owned by Neinver, is the only CEE centre to be sold as part of the portfolio and offers 15,800 sqm of retail space with 87 stores, an annual sales density of EUR 3,300 per sqm and a footfall of 2.8 mln customers per year. The largest outlet is in Zweibrücken, Germany, at 29,000 sqm with 114 tenants, an annual sales density of EUR 6,000 per sqm and an annual footfall of 3.8 mln customers. The Vila Do Conde outlet centre near Porto in Portugal has an area of 28,000 sqm with 129 stores, a footfall of 4.3 mln customers and an annual sales density of EUR 4,000 per sqm. The fourth centre is in Seville in Spain and is targeted at tourists visiting the country’s Andalucía region. The centre has an area of 26,400 sqm with 65 stores, an annual sales density of EUR 3,600 per sqm and a footfall of 2 mln customers per year.

Timon Drakesmith, the CFO of Hammerson and chairman of VIA Outlets Advisory, has commented: “This is a rare opportunity to acquire strong outlet centres in an off-market transaction. Well-positioned European outlets continue to deliver strong sales growth supported by an improving customer offer and increasing tourist numbers across Europe.” With this transaction the value of Via Outlets’ portfolio has increased to EUR 1.1 bln with ten properties. The five-year prognosis for the unleveraged rate of capital return is 11 pct.

A joint venture between Neinver and TIAA is to buy six European outlet centres situated in Spain Italy and Poland. Neinver specialises in constructing and investing in assets on the European market, while TIAA is a Fortune 100 listed company offering complex financial services. TH Real Estate, one of the world’s largest investment managers on the real estate market, is to continue as a consultant while Neinver will act as the property manager. This transaction tightens the collaboration of TIAA and Neinver that began two years ago with the goal of creating a European platform for the outlet sector.

The centres to be acquired are three Style Outlets centres located in the Madrid area (Las Rozas, San Sebastián de los Reyes and Getafe), and two similar centres in Italy (Vicolungo near Milan and Castel Guelfo near Bologna) as well as also the Factory centre in Poznań. This portfolio is worth EUR 700 mln and is to be sold by IRUS European Retail Property Fund, which is jointly owned and managed by Neinver. The portfolio has an average occupancy rate of 98 pct and in 2015 had a footfall of over 20 mln customers with sales in excess of EUR 400 mln.

The joint venture already had a portfolio that included Roppenheim The Style Outlets in France, Factory Annopol in Warsaw, Factory Outlet–Future Park in Kraków, Nassica Retail and Leisure Park in Madrid as well as the recently opened (October 2016) Viladecans The Style Outlets near Barcelona. The acquisition of six more assets will bring the value of the portfolio to EUR 1.2 bln, with the transaction to be finalised in the first quarter of 2017.

“We enjoy a very successful and collaborative relationship with TH Real Estate and adding these strategic assets to our partnership confirms the firm commitment to creating a market-leading outlet platform in Europe,” said Carlos González, the managing director of Neinver.

“The voint venture has grown rapidly since its inception in late 2014 and now is one of the leading platforms of its type in the European market,” stated Carl White, the director of European retail investment at TH Real Estate.

The outlets in new hands

Factory Poznań is in the administrative centre of one of the wealthiest regions in Poland and has an area of 14,200 sqm with 95 stores. The centre is fully leased with an annual footfall of around 2.5 mln customers.

Castel Guelfo The Style Outlets near Bologna has a catchment area of around 4.7 mln inhabitants and also attracts tourists, 9 mln of whom come to visit the nearby resorts on the Adriatic each year. The centre has 110 stores on an area of 24,500 sqm. The car park has 1,970 spaces and the centre is 98 pct leased.

Vicolungo The Style Outlets has 146 stores and offers many premium brands. The centre is located next to the junction of the A26 and A4 motorways and is a 30-minute drive from Milan-Malpensa airport. It has 34,200 sqm and is 98 pct leased. The annual footfall is over 4 mln customers.

Getafe The Style Outlets is to the south of Madrid. The centre, which is 99 pct leased, has been extended three times and now offers an area of 21,000 sqm with 68 stores. It has an annual footfall of 12 mln.

Las Rozas The Style Outlets is northwest of Madrid and has a catchment area with 7.3 mln people. It was opened in 1996 and was the first such outlet centre in Spain. Ten years later the complex underwent a total renovation.

San Sebastián de los Reyes The Style Outlets has 90 stores and is fully leased. It is visited by around 5 mln shoppers every year and has a sales area of 38,300 sqm.