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TH Real Estate expands outlet mall portfolio with central China’s first luxury designer outlet

Florentia Village Wuhan

Silk Road Holdings, for which TH Real Estate acts as investment advisor, has successfully opened its latest authentic Italian luxury designer outlet in central China, Florentia Village Wuhan.

The property, which officially opened on 5 July, adds to TH Real Estate’s growing portfolio of outlet malls and was completed with a total investment of approx. 400 million yuan (c.US$59m).

Situated in Ezhou, Hubei Province, Florentia Village Wuhan’s location enjoys several advantages. Ezhou has a long history as one of China’s most popular tourist cities, and the mall is expected to benefit from huge volumes of tourist traffic. The property’s location in Ezhou’s Gedian Economic and Technological Zone also puts Florentia Village Wuhan only 20-minutes by bullet train from Wuhan railway station and an hour’s drive from Wuhan Tianhe international airport.

The Florentia Village project will also make Ezhou better integrated with China’s One Belt, One Road initiative, according to the Ezhou Municipal Government. Ezhou was also one of Hubei’s first pilot areas for reform and won the title of 'Best City in Central China for Investment' in 2007.

Florentia Village will keep expanding its presence in China, leveraging its market position. Following the opening of the Wuhan outlet, another Florentia Village will open in western China’s Chengdu by Q4 2017, followed by the opening of Florentia Village Chongqing in 2018.

Chris Reilly, Managing Director of Asia Pacific at TH Real Estate, said: "Florentia Village Wuhan will benefit immensely from the city’s strong long-term demand fundamentals, strategic location, as well as the strong tourist traffic.  Coupled with the competitive pricing, the mall’s broad offering of luxury brands will also urge consumers to return again and again, and contribute to an enjoyable, positive retail experience.
"Luxury outlet malls in China allow investors to tap into Asia-Pacific’s surging consumption growth. It is a niche sector from where institutional investors can earn competitive, risk-adjusted returns."

Florentia Village Wuhan will offer 360,000 sq ft (33,600 sq m) of prime shopping space and boasts top international brands, including Brooks Brothers, Ports, Guess, Nike, Adidas, Puma, Elegant Prosper, Marisfrolg, Folli Follie, The North Face, and Moussy, among others. Global toy giant Mattel will also open China’s first Barbie-themed toy store in Florentia Village Wuhan. Many of the renowned domestic and international brands will also offer discounts of up to 80% all year round.

Named after the storied Italian city of Florence, China’s Florentia Village outlets are designed according to a traditional Italian aesthetic. Florentia Village Wuhan continues the design philosophy seen at its counterparts in Tianjin, Shanghai, and Foshan in having an immersive and authentic Italian theme. Exquisite Italian design, romantic exoticism, outstanding discounts and impeccable customer service will make Florentia Village Wuhan a new fashion hotspot for locals and tourists alike.

Silk Road is advised by RDM Asia (the real estate development company of the Fingen Group in Asia) as operating and development partner, alongside TH Real Estate as investment advisor. Together, the team brings an unprecedented degree of international outlet expertise, luxury retail network, development capability and local market knowledge which has established a new benchmark for the China luxury outlet sector in terms of design, brand representation and consumer experience.

Silk Road Holdings is the joint venture team responsible for the iconic Florentia Village in Jingjin, Shanghai, Guangzhou, and Hong Kong, all of which set the benchmark for outlet shopping in China, delivering the concept in multiple gateway cities across China. The Jingjin outlet was first opened in 2011, followed by Guangzhou and Shanghai in 2015. Most recently, the Hong Kong outlet opened in February 2017.

Silk Road Holdings shareholders include the Italian Fingen Group of the Fratini Family, the Luxemburg based China Outlet Mall controlled by Jacopo Mazzei, Gaw Capital Partners from Hong Kong, the Sino-US Waitex affiliate as well as a major US institutional investor.

This press release is intended for trade press only. Please do not redistribute. Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. TH Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”), the investment management arm of TIAA. 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. COMP201700456

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