Peel L&P to invest £150m in Outlets Division
Lifestyle Outlets, part of Peel L&P, is driving growth across its successful experience-led outlets portfolio with £150m of further development and are looking to accelerate this growth by bringing in a new strategic investor.
Significant investment is planned for Gloucester Quays, The Lowry Outlet, MediaCityUK, and Lifestyle Outlets are progressing plans for a new £100m outlet on the banks of the River Clyde, Glasgow.
The operational portfolio consisting of Gloucester and Manchester, has delivered significant sales growth across the Christmas period with an 8% year-on-year increase, as a balanced combination of exciting leisure and entertainment, strong retail and food & beverage offerings continues to attract consumers and new operators
CBRE has been appointed to lead the hunt for an investment partner initially for Gloucester Quays, which generates footfall of nearly seven million per year.
Defying the current national retail trend, Gloucester has secured a number of new high-profile tenants recently – including Hugo Boss, Adidas and Wagamama – as vacancy rates across the circa 355,000 sq ft scheme remain low due to increasing appetite from operators.
Uniquely positioned in the heart of Gloucester with an attractive waterfront setting, the high-end outlet centre benefits from increased frequency of visit and dwell times as the inclusion of quality leisure in the scheme has encouraged footfall and positioned the centre as a go-to destination.
To facilitate further development a partner is now being sought initially at Gloucester Quays as Lifestyle Outlets pushes forward exciting development plans across its portfolio.
Neil Lees, Deputy Chairman, Peel Group, said:
“The UK outlet market is in a strong position and Gloucester Quays continues to outperform in terms of net income growth and capital value. We believe it is the right time to bring in a partner who we can continue to grow the scheme with. This is part of Peel L&P’s long-term strategy, where we will continue to look to work with third party like-minded investors to develop our assets, like we have successfully achieved at MediaCity UK.
Our experience-led model of outlet shopping is resonating with consumers and operators alike. We’ll continue to invest in and grow the Lifestyle Outlets portfolio as we deliver a new type of elevated shopping experience.”
Gloucester Quays anchors one of the largest placemaking regeneration developments in the UK and has been delivered alongside new homes and commercial space. It has become a major destination for shoppers, families and tourists.
Rhodri Davies, Head of Retail Capital Markets at CBRE, added: “This transaction is a rare opportunity for an investor to gain exposure to a sector with proven year on year footfall and sales growth.”
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Notes to Editors
• The Christmas period has been taken as the 15th November through to 6th January
• Lifestyle Outlets currently has two operational outlets, attracting more than 11 million visitors in the last year and achieving 10% growth in sales (FY2017/18). Lifestyle Outlets Manchester,
Lowry Outlet MediaCityUK Manchester, located within MediaCityUK and Lifestyle Outlets Gloucester, Gloucester Quays, situated in the City of Gloucester.
• Lifestyle Outlets is expanding its portfolio with the £100m Glasgow Harbour Lifestyle Outlet, which will regenerate Glasgow’s waterfront and deliver a balanced combination of entertainment and experience, as it becomes a major leisure attraction in the city.
Peel L&P – realising possibility.
We are an ambitious regeneration business with generations of history, heritage and expertise in our DNA. First established in 1971, Peel L&P is now responsible for some of the most transformational development projects in the UK today. Owning and managing 12 million sq ft of property and 20,000 acres of land and water, our holdings are concentrated in the north west of England but we also own and manage significant assets throughout the UK with a total portfolio value of £2.6 billion.
As a part of the Peel Group; we are integral to a business that strives to make a positive impact on people’s lives.
Our legacy matters. We take great pride in the outcomes we achieve, the people we work with, the way we go about our business and the transformational projects we deliver.
Our specialist teams have a proven track record in delivering high-quality, legacy projects across land, property, water and airspace. This includes airports, hotels, waterways, media hubs, event spaces, leisure facilities, retail, workspaces, residential development, industrial & logistical space, public realm, historic gardens and the renewable energy sector.
Peel L&P is an agile and ambitious business with a legacy of success for a long-term, sustainable future.
We see possibility. We deliver transformation.
Issued by The BIG Partnership on behalf of Peel Lifestyle Outlets
For further information, please contact The BIG Partnership 0141 333 9858