In a significant deal within the commercial property sector, the Cheshire Oaks and Swindon Designer Outlet malls in England have been sold for £600 million. The buyer, LaSalle Investment Management, is a US-based company and part of the property group JLL, while the seller is Nuveen Real Estate. The majority of the purchase price is attributed to Cheshire Oaks, which is located in Ellesmere Port. LaSalle reportedly outbid Landsec, the owner of the Bluewater mall, to secure the acquisition.
Nuveen originally acquired Cheshire Oaks in 2008 as part of a £365 million deal, which also included the Swindon outlet. Cheshire Oaks is the largest designer outlet village in the UK, spanning an impressive 400,000 square feet. The management of both sites, including Swindon Designer Outlet, is expected to remain with McArthurGlen Group, a major player in the European mall industry.
Cheshire Oaks underwent a significant expansion project in 2018, costing £24 million. This project added over 25,000 square feet of new retail space, a visitor center, expanded parking facilities, and other amenities. Currently, the mall boasts 145 stores, including renowned designer brands like Giorgio Armani, Burberry, Mulberry, Michael Kors, and Polo Ralph Lauren.
Nuveen also made substantial investments in the Swindon Designer Outlet, which claims to be one of Europe’s largest covered designer outlets. The mall features 90 stores, housing popular fashion brands such as Guess, Reiss, Joules, Kurt Geiger, Superdry, Boss, Hobbs, Marks & Spencer Outlet, Ted Baker, Calvin Klein, and Tommy Hilfiger.
LaSalle Investment Management’s acquisition of Cheshire Oaks and Swindon Designer Outlet is seen as a significant accomplishment, securing valuable assets in the retail sector. The Swindon Town Council has expressed excitement about the future of the outlet center, recognizing its importance as a valuable asset to the town and a tourist attraction. The council looks forward to collaborating with the new owners and McArthurGlen to attract further investment in the center beyond 2022.
At present, LaSalle Investment Management has chosen not to provide any comments on the acquisition.
Despite their solid performance in the retail industry, designer outlet malls were heavily affected by the COVID-19 pandemic due to the absence of foreign tourists, who play a crucial role in their success. However, with the gradual easing of international travel restrictions, the sector hopes for a robust recovery in the upcoming year.
Useful links:
1. Nuveen Real Estate: Nuveen’s official website, providing information on their real estate investments and services.
2. LaSalle Investment Management: Official website of LaSalle Investment Management, offering insights into their investment strategies and portfolio.
