Neinver and TH Real Estate have joined forces to create one of Europe’s biggest retail outlet platforms. The strategic partnership agreement was signed this month, making it possible for the parties to develop new outlet centers as a joint venture. The investors say they’ll be focusing on existing and ongoing projects that are already a part of their portfolios, including Neinver’s outlet projects in Poland.
In preparation of the partnership, TH Real Estate took over a 50-percent stake in Roppenheim The Style Outlets in France. The investor also plans to take over Factory Annopol in Warsaw, Factory Kraków and Futura Park in Kraków. The company will oversee the development process for Viladecans The Style Outlets in Spain.
“Over the last 10 years, outlet centers have proven to be one of most underappreciated but fastest-growing sectors in the European real estate sector. In fact, they’ve performed well during the financial crisis. Strong demand from international retail chains have expanded the tenant base and pushed investors to improve the quality of these projects. These factors continue attracting new investors, while strong demand in conjunction with limited availability of lettable space will push the commercialization levels up in these schemes, which will increase their market value,” said Alice Breheny, vice director for the research department at TH Real Estate.
“The strategic partnership agreement with TH Real Estate, acting on behalf of TIAA-CREF, will make it possible for Neinver to continue its growth and consolidation of its existing platform. Active in the European outlet sector since 1996, we’re currently managing a portfolio worth more than $3bn, with two-thirds of this being projects operating under the Factory and The Style Outlets brands. The corporation with TH RE will strengthen our position in the sector which remains our core activity,” said Daniel Losantos, managing director at Neinver.
TH Real Estate is a global asset manager for real estate investment. The company also provides debt financing. Its agreement with Neinver marks TH Real Estate’s debut into the outlet sector.
