THE Cheshire Oaks retail park has been sold as part of a £600 million deal.
LaSalle Investment Management, the global real estate investment manager, confirmed on Thursday, April 21 it had acquired two prime outlet centres in the UK; McArthurGlen Designer Outlet Cheshire Oaks in Ellesmere Port, and McArthurGlen Designer Outlet Swindon, for £600 million from Nuveen Real Estate.
Cheshire Oaks makes up the majority of the purchase price. The deal is the largest in the sector since 2014 and represents a yield of 6 per cent.
Cheshire Oaks Designer Outlet is the largest outlet centre in the UK, with over 160 units complimented by a wide variety of food and drink offerings.
It boasts a range of designer label stores, including the likes of Armani, Burberry, Michael Kors, Mulberry and Polo Ralph Lauren, attracting shoppers from all over the country.
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A £1.4 million play area for children was installed at the Ellesmere Port centre in August 2021, where a number of shops are also dog-friendly.
The outlet village, which first opened in 1995, is managed by the McArthurGlen Group.
At over 400,000 square feet, it is the largest Designer Outlet Village in the UK.
The investment was made through LaSalle’s growing Value-Add Investments business line. The assets will continue to be managed by McArthurGlen, Europe’s largest manager of premium designer outlets.
LaSalle intends to undertake targeted capex (capital expenditure) investment in both assets to expand event areas, increase car parking, enhance customer experience, and improve their ESG (environmental, social and governance) credentials. The portfolio benefits from an attractive, inflation-linked and turnover-based lease model.
Blake Loveless, head of value-add investments at LaSalle, said: “We’re thrilled to be working with McArthurGlen on this exciting venture. These are two of Europe’s premier outlets and are well-placed within our value-add strategy, which targets attractive risk-adjusted equity returns for real estate investments across Europe.”
Michael Zerda, head of debt and value-add strategies at LaSalle, said: “This transaction represents the first large-scale acquisition made by LaSalle’s reconstituted Value-Add Investments business line in Europe. We look forward to unlocking the full potential of this portfolio in the years to come for the benefit of our investors.”
John Ralston, McArthurGlen’s regional director, UK and Canada, added: “Having originally developed and managed the successful McArthurGlen Designer Outlets at Cheshire Oaks and Swindon since their openings in 1995 and 1997 respectively, we are delighted to be working with LaSalle on its new investment. This demonstrates our continued confidence in both Centres and in the outlet sector across Europe.”
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