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NEINVER and TIAA Henderson Real Estate create strategic partnership

Roppenheim The Style Outlets

NEINVER and TH Real Estate, on behalf of TIAA-CREF, have formed a strategic partnership to create a leading designer outlet platform in Europe, bringing together two well established players within the niche outlet mall sector.

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

The partnership – a 50:50 exclusive shareholders joint venture agreement - has commenced with TH Real Estate’s acquisition of a 50% stake in Roppenheim The Style Outlets, in France, and will quickly grow in early 2015 with the agreed purchases of FACTORY Outlet Annopol in Warsaw and FACTORY Outlet and Futura Park, in Krakow, Poland. The joint venture will also develop out NEINVER’s flagship project Viladecans The Style Outlets, in Barcelona, Spain. Both partners have aspirations to build a significant investment platform over time.

Daniel Losantos, Managing Director, NEINVER, commented “We are very pleased to have closed this strategic partnership with TH Real Estate, on behalf of TIAA-CREF. This will enable NEINVER to continue growing and consolidating its operating platform. We have been in the outlet business in Europe since 1996 and have established a successful track record, developing and managing $3bn+ of retail across continental Europe of which $2bn+ have been outlet centres, under the brands FACTORY and The Style Outlets. This Joint Venture will reinforce our specialised asset management and development skills and is a great opportunity to merge global expertise in the outlet sector, with a common approach to value creation.”

David Turner, Head of TIAA European Investment, TH Real Estate said “We are excited to enter into a new partnership with such an established player and look forward to working collaboratively together to create further value from this seed portfolio. A partnership with Neinver allows us to further penetrate this niche market, opening up opportunities for us to broaden our geographic reach. It marks the first foray into the outlet sector on behalf of TIAA CREF. TH Real Estate, meanwhile, already has a well-established track record, having built up a $3bn+ global outlet mall portfolio across the UK, continental Europe & China. This partnership is aligned with our aspirations to expand our presence across the global market as further consolidation across the sector takes place.”

Alice Breheny, Global Co-Head of Research at TH Real Estate added “Designer outlets have been one of the most widely misunderstood, but strongest performing, real estate sectors in Europe over the past decade and, relatively speaking, they thrived during the global economic downturn. Strong demand from international retailers means the occupier base is broadening and covenant quality is improving; likewise, the investor base is deepening. Constrained supply, coupled with growing demand, should see continued rental growth and a long term structural improvement in investment pricing globally.”

Disclaimer
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. The value of Investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and Investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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