LaSalle Investment Management has closed its deal to buy two outlet centres for £600m from Nuveen Real Estate.
The investment manager made the acquisitions – McArthurGlen Designer Outlet Cheshire Oaks and McArthurGlen Designer Outlet Swindon – through its value-add investments business line.
The assets will continue to be managed by McArthurGlen.
Most of the portfolio value is comprised of Cheshire Oaks Designer Outlet, thought to be the largest designer outlet in the UK at more than 400,000 sq ft. It is made up of over 160 individual shops, including Burberry, Polo Ralph Lauren and Nike.
The smaller of the two assets, Swindon Designer Outlet, measures some 250,000 sq ft. It has more than 100 stores, with tenants including Tommy Hilfiger, Calvin Klein and Lacoste.
LaSalle said it would undertake targeted capex investment in both centres to expand event areas, increase car parking, enhance customer experience, and improve their ESG credentials. It added that the portfolio benefited from an inflation-linked and turnover-based lease model.
LaSalle had previously fended off competition from Landsec to clinch the deal.
Blake Loveless, head of value-add investments at LaSalle, said: “These are two of Europe’s premier outlets and are well-placed within our value-add strategy, which targets attractive risk-adjusted equity returns for real estate investments across Europe.”
Michael Zerda, head of debt and value-add strategies at LaSalle, said: “This transaction represents the first large-scale acquisition made by LaSalle’s reconstituted value-add investments business line in Europe. We look forward to unlocking the full potential of this portfolio in the years to come for the benefit of our investors.”
John Ralston, regional director, UK & Canada at McArthurGlen, which developed and managed the Cheshire Oaks and Swindon outlets since their openings in 1995 and 1997, said the deal “demonstrates our continued confidence in both centres and in the outlet sector across Europe”.
Cushman & Wakefield advised LaSalle on the deal.
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
