Closed Fund

European Outlet Mall Fund

By combining the retail and fund management expertise of TH Real Estate with the specialist skills of McArthurGlen, the European Outlet Mall Fund offers investors access to a niche sector of the property market.

Key facts

Target sector Designer outlets
Target return 10% per annum annualised IRR on Invested Capital over the life of the Fund.
Fund structure Closed-ended Luxembourg Fonds Commun de Placement (FCP)
Fund term 2024
Currency Euro
Fund value €2.5bn (c.$2.7bn) GAV
No. of assets 8
Max gearing 40%
Fund Manager Sebastien Gorrec
Investment strategy

Expansion of the current outlet mall portfolio by extension of existing outlet malls.
Possible acquisitions of prime dominant outlet malls or ones with the potential of becoming dominant outlet malls.
Active management of the portfolio in order to maximise returns.

Responsible Property Investment (RPI) strategy

Our sustainability strategy for the European Outlet Mall Fund is very much a partnership with McArthurGlen, who wherever viable seek to minimise the environmental impacts of our assets and retail activities. We have a comprehensive programme in place covering energy, water, waste, transport, biodiversity & ecology, supply chain, community and retailer engagement. Importantly, we take account of national differences, focusing on local priorities, risks and opportunities.

Further information on TH Real Estate's RPI strategy 

Global Real Estate Sustainability Benchmark (GRESB)

The Fund was awarded a GRESB Green Star in 2016, for the sixth year running, and exceeded its peer group average in 6 out of the 7 benchmark aspects, achieving the best overall score to date. The Fund achieved a score of 100/100 for the Fund's environmental management system and a score of 99/100 for the Fund's ability to manage sustainability risks and maximise opportunity. In addition, the Fund achieved the highest GRESB rating of 5-stars, reflecting upper quantile performance compared with the entire universe of GRESB participants.

Note: Target returns are not guaranteed and past performance is not a guide to future performance
Source: TH Real Estate, December 2016

 
Seb Gorrec

Sébastien Gorrec

Fund Manager

Sébastien's biography
This Fund gives investors access to some of the best designer outlets in Europe managed by leading outlet specialist McArthurGlen. The portfolio has remained incredibly resilient during periods of weak economic growth and offers potential for strong future return.
Castel Romano, Castel Romano

McArthurGlen Castel Romano Designer Outlet Italy

In 2013, our Outlet Mall Fund opened its third phase at McArthurGlen Designer Outlet Castel Romano in Italy. The 7,500 sq m expansion created space for a further 43 stores, adding to an extensive list of luxury brands such as Michael Kors, Furla and a flagship Burberry store. The Fund acquired the asset in 2005. This new opening comes after two previous extensions following the asset’s creation in 2003. It is now one of the largest designer outlets in Italy with 160 stores and 30,000 sq m of retail space. Managed and developed by McArthurGlen, the designer outlet can be reached within 20 minutes from the centre of Rome. It has become increasingly popular with brand-conscious shopping tourists due to tax-free sales, with Russian and Chinese consumers providing particularly high footfall and spending. Designer outlets have been one of the strongest performing retail sectors across Europe over the past decade. We have seen particularly high footfall across our Italian portfolio and are delighted by the success of the first two phases of the McArthurGlen Designer Outlet Castel Romano. The first class tenant line-up, coupled with the resilient nature of the outlet sector and McArthurGlen’s expert management, continue to prove a winning combination for our investors.

Neumunster Designer Outlet, Neumunster

Neumünster Designer Outlet Centre, Hamburg

The Neumünster Designer Outlet Centre was opened in 2012 as part of a joint venture with McArthurGlen. The project, which cost $127m (€93m) to develop, was delivered on time and on budget. By December 2013, 92% of the 20,000 sq m space was occupied. The Mall has a first rate location, being placed 45 minutes north of Hamburg. It boasts an excellent tenant mix, including Hugo Boss, Nike and Armani, with Polo Ralph Lauren taking the place of anchor tenant in 2014.

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

Andrew Rich

Andrew Rich

Fund Manager

With 15 years’ real estate experience, Andrew oversees all investment, development and asset management activities for the Fund.

+442037278194 More about Andrew
Seb Gorrec

Sébastien Gorrec

Fund Manager

Sébastien has been dedicated to the management of the 1bn+ European Outlet Mall Fund since he joined the Business in 2008. He has played a key role in completing new investments and disposing assets for the Fund, in various European jurisdictions. He has strong knowledge and experience in various key areas ranging from finance, structuring to asset management.

+44 (0) 20 3727 8148 More about Sébastien
Mike Blackmore

Mike Blackmore

Portfolio Manager

With over seven years’ real estate experience, Mike is primarily responsible for forecasting performance for the Outlet Mall Fund, which includes being involved with investment, leasing, asset management and development plans. He also coordinates quarterly fund valuations.

+442037278422 More about Mike
Andrea Faccio

Andrea Faccio

Portfolio Manager

Andrea works on the portfolio management of our $2bn European Outlet Mall Fund, which is invested in eight assets across Europe.

+442037278131 More about Andrea
Jin Sandhu

Jin Sandhu

Senior Finance Manager

With almost 20 years of experience, 15 of which have been in real estate, Jin plays a key role in completing the Fund Report & Accounts, the Fund and statutory audits, responding to investor queries, as well as providing strategic financial support to the Fund Manager and Asset Management team.

+442037278199 More about Jin
Wayne Saville

Wayne Saville

Senior Client Services Manager

Wayne Saville is Senior Client Services Manager within Investor Relations at TH Real Estate. He is responsible for client services across a range of segregated clients, UK and European funds and fund of funds.

+44 (0) 20 3727 8201 More about Wayne