Retail

With c.$35bn invested, we are one of the largest global fund managers in the retail sector, managing c.300 retail assets around the world. Our flagship products include those focused on prime shopping centres, retail warehouse parks, neighbourhood centres and outlet malls. We also manage a number of significant retail mandates on behalf of international sovereign and major pension fund clients, and are involved in some of the best known retail schemes worldwide, including Florentia Village Jingjin in Beijing, Bullring in Birmingham, Mount Ommaney Shopping Centre in Brisbane and JK Iguatemi Mall in Brazil.

Recent retail highlights

 

 
Myles White

Myles White

Fund Manager

Myles's biography
We bring a unique offering to the retail sector: a fusion of a skilled retail manager with the gravity of a large investor. Our approach to retail is multi-layered: Our research team continuously monitors the changes in consumer behaviour, our asset managers build close working relationships with our tenants, and our investment teams focus on understanding and delivering our clients’ objectives.

Sectors:

Ala Moana

Ala Moana Center, Honolulu, Hawaii, US

In April 2015, we acquired a 12.5% stake in the Ala Moana Center in Honolulu, Hawaii. With over $1,350 of tenant sales per sq ft, the asset is one of the largest and most productive shopping malls in the world.

The property is comprised of approximately 2.2 million sq ft (c.204,000 sq m) of retail and office space, and is undergoing a major redevelopment. Upon completion, an additional 660,000 sq ft (c.61,000 sq m) of retail space will be anchored by Bloomingdale’s first store in Hawaii, and Nordstrom, which is currently relocating within the centre.

Ala Moana Center also features Neiman Marcus, Macy’s and more than 280 first-class tenants including Apple, Cartier, Chanel, Ben Bridge, Bottega Veneta, Harry Winston, Hermes, Louis Vuitton, Miu Miu, Prada and Tiffany.

St James, Edinburgh

Edinburgh St James, Edinburgh, UK

A world-class example of city-enhancing place making, Edinburgh St James is one of the UK’s largest and most significant regeneration projects, which we are proud to be the developers of.

With an estimated value of over $1.4bn, the development, which is one of the assets within our UK Shopping Centre Fund, will create 1 million sq ft (c.93,000 sq m) of high-quality retail space, a luxury hotel and up to 250 new homes. A landmark development within a celebrated European city, Edinburgh St James provides a unique opportunity to create a place where shoppers, residents and visitors can indulge and relax.

In April 2014, an innovative funding agreement between the City of Edinburgh Council, Scottish Government and TH Real Estate was agreed, providing c.$92m to improve local infrastructure and public space in the area. We plan to start construction in 2016, with completion due in 2020.

Islazul

Islazul Shopping Centre, Madrid, Spain

Our c.$270m acquisition of Islazul Shopping Centre in Madrid represented the second largest investment in a single retail asset in the Spanish market, since the onset of the global financial crisis. In collaboration with a Korean investor, we purchased the asset from Grupo Lar and Ivanhoe Cambridge.

Totalling c.2.8 million sq ft (c.260,000 sq m), with a gross leasable area of c.970,000 sq ft (90,000 sq m), Islazul is the third largest shopping centre in Madrid. The retail mix is primarily made up of fashion brands, accounting for 40% of the surface area, while leisure and restaurants occupy 28%, and a hypermarket, operated by Leclerc, occupies 17.5%. The remaining surface area is occupied by services or household stores. The centre also has 4,089 parking spaces.

With an average of 10 million visitors per annum, the shopping centre boasts major firms such as Primark, a number of Inditex brands, H&M, a Yelmo Cinema complex, and a Media Markt home electronics store.

Florentia Village Jingjin

Silk Road Holdings’ Florentia Villages, Guangzhou and Shanghai, China

Having successfully invested its seed $200m over the past two years, across three outlet mall assets, Silk Road Holdings, the Singapore joint venture established to invest in and develop luxury designer outlet malls in China, raised a further $100m from its shareholders over the course of 2014. The current Silk Road Holdings’ portfolio includes the iconic Florentia Village Jingjin Designer Outlet Centre in Wuqing, which has set the benchmark for luxury outlet shopping in China. The site has undergone numerous expansions, with its third phase opening in August 2014.

Florentia Village Shanghai opened in January 2015. Brands include Gucci, Armani, Ferragamo, Celine, Fendi, Coach, Hugo Boss, Etro, Gap, Michael Kors, DVF, Missoni and Moncler, amongst others in the 166-unit centre.

Florentia Village Guangzhou is making excellent construction progress, with on-track construction completion followed by an opening of Phase 1, comprising 123 stores, set for Q3 2015. Leasing is progressing well.

Two further sites have recently been acquired in 2015, located in Chengdu and Wuhan. Planning and design is underway, with construction anticipated to begin on both sites in late 2015, securing the Florentia Village development pipeline until the end of 2016.

Factory Annopol

Strategic partnership formed with NEINVER

In December 2014, on behalf of TIAA-CREF, we formed a strategic partnership with NEINVER, a leading pan-European outlet mall developer and operator, to create a leading designer outlet platform in Europe. The alliance brings together two well-established players within the niche outlet mall sector.

The joint venture will initially focus its investment on a number of outlet malls across NEINVER’s existing portfolio and development pipeline. NEINVER will continue to provide its specialist and dedicated asset management and operational skills across the portfolio.

The partnership commenced with TIAA-CREF’s acquisition of a 50% stake in Roppenheim The Style Outlets in France, shortly followed by acquisitions of FACTORY Outlet Annopol in Warsaw, and FACTORY Outlet and Futura Park in Krakow, Poland. The joint venture will also develop NEINVER’s flagship project, Viladecans The Style Outlets, in Barcelona, Spain.

thecentre:mk, Milton Keynes

thecentre:mk, Milton Keynes, UK

In 2013 we were chosen to act as investment advisor for AustralianSuper’s emerging UK retail property strategy. Soon after, we advised the c.$52.5bn superannuation fund on its purchase of its first direct investment for its international property portfolio. In the form of a 50% interest (c.$450m) through a partnership with The BT Pension Scheme (BTPS), AustralianSuper purchased thecentre:mk, a major regional shopping centre in Milton Keynes, north west of London, UK. Sitting in the growth corridor between Oxford and Cambridge and spanning c.121,000 sq m of prime retail, thecentre:mk ranks as a top 10 UK shopping centre in terms of retail space provision. It is anchored by John Lewis, House of Fraser and Marks & Spencer alongside 220 retail stores. thecentre:mk attracts over 27 million customer visits every year and is the focal point for Milton Keynes’ city centre, with strong community support and excellent growth potential.

Manchester Fort Shopping Park, Manchester

UK Retail Warehouse Fund extension

In 2014, our c.$1.6bn UK Retail Warehouse Fund secured a six-year fund life extension. The original Fund, which was due to expire in December 2015, will now run until December 2021 with further options to extend.

The Fund invests in prime retail warehouse parks across the UK, with a portfolio comprising 14 schemes. Recent activity includes the acquisition of an additional stake in Ashford Retail Park (Phase 2), the sale of Blackwater Shopping Park in Farnborough, and ongoing development activity across a number of assets, including Weavers Wharf in Kidderminster and Central Retail Park in Manchester.

We worked collaboratively with our investors to ensure they were engaged at every stage of the process, which we initiated at the end of 2012. In addition to the six-year extension, the Fund has been restructured to accommodate a number of changes, including the ability to raise equity - up to 10% p.a. - in addition to an ‘in-specie’ allowance, which enables the Fund to issue new units in exchange for retail assets.

In 2015, the Fund secured a new c.$590m debt financing, replacing the current financing which was due to mature at the end of 2015.

Note: Past performance is not a guide to future performance.