All Articles

TH Real Estate expands outlet mall portfolio in Southwest China

TH Real Estate on Friday, 27 November 2015, announced the development of Florentia Village Designer Outlet Mall at Pixian in Chengdu, China. The outlet represents the first authentic Italian luxury outlet in Southwest China, wholly owned and operated by foreign investment. RDM Asia, which manages the Florentia Village outlet malls, held a ground breaking ceremony in Pi County, Chengdu on Friday.

This is the fourth designer outlet mall in China owned by Silk Road Holdings, for which TH Real Estate acts as an investment advisor. The village has a total planned investment of US$110m and will occupy a site of approximately 120,000 sq m (c.1.3 million sq ft). This outlet follows the Beijing-TianjinShanghai and Guangzhou-Foshan Florentia villages. The Chengdu Village is targeting an open to the public in Q4 2016.

The Chengdu Village will continue the Florentia Village customary unique design and concept, inspired by a classic Italian architectural style that includes an open-air environment with impressive squares, scenic galleries and arcades, fountains and stylish brick roads. It sets to create an Italian-style shopping experience.

The Florentia Villages are expected to generate a total turnover of $700m through 7 million visitors in 2015. It is also expecting to welcome 10 million visitors in 2016, projecting a revenue of $940m.

In 2017, the Florentia Villages in Wuhan, Chongqing and Qingdao will also be unveiled, projecting more than 300,000 sq m of project land and over 30 million visitors yearly across all seven villages.

Chris Reilly, Managing Director, Asia Pacific, TH Real Estate says "The growth story of retail sales in China is compelling with international and domestic retailers expected to continue their aggressive expansion plans. We believe the rental growth prospects for Chinese luxury outlets will be correspondingly impressive as retailers compete for the best assets. Based on our study of global megatrends, we see strong growth forecast of personal disposable income in China’s middle class further providing a boost to the luxury retail sector. TH Real Estate has a well-established track record in outlet malls, having built up a £3bn+ global outlet mall portfolio across the UK, continental Europe & China. We are excited to be working with our partners to further expand on this asset class which is seeing tremendous growth."

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services.