Hammerson and APG, the leading partners in premium outlet malls operator Via Outlets, have recently announced their decision to boost their stakes in the company to achieve full control. This strategic move not only highlights the growing significance of the outlets sector within the retail industry but also showcases the foresight and determination of mall experts in capitalizing on this lucrative segment.
David Atkins, CEO of Hammerson, underscored the importance of this development, emphasizing that “Our investment in Via Outlets is a key differentiator for Hammerson, as this sector continues to deliver exceptional value creation alongside substantial growth in brand sales and footfall.” He further elaborated on the management team’s clear strategy to entice new brands and oversee expansions to leverage the rising consumer spending trends and the relatively low online presence in this specific sector.
As part of the transaction, both Hammerson and APG have augmented their ownership in the business by a margin exceeding 3% each, collectively contributing to a 6.25% overall increase. Consequently, both entities now wield a 50% stake in the €1.6 billion enterprise, solidifying their control of Via Outlets. The previous principal stakeholders of the company, Value Retail and Meyer Bergman, have been replaced by Hammerson and APG following their recent share increments.
This strategic investment follows the appointment of CEO Otto Ambagtsheer, who brings extensive experience from his prior role as the COO of Via Outlets. The company’s commendable performance in 2018 boasted substantial trading results across all 11 centers, with brand sales surging by 9% to reach €1.07 billion and footfall witnessing a 4% uptick, welcoming a staggering 30 million visitors. Ambagtsheer has indicated the sustained enhancement of these pivotal operating metrics in 2019, with brand sales soaring by 10% and a commendable 8% spike in footfall attributed to targeted marketing initiatives.
Since its establishment in 2014, Via Outlets has been on a trajectory of expansion, acquiring and supervising outlet centers spread across nine European countries. With a current portfolio comprising 11 centers strategically positioned in renowned tourist hotspots across Europe, Via Outlets has earned the reputation of being the fastest-growing outlet owner in the region, ranking third-largest in terms of portfolio size. Notably, remodeling projects conducted in four malls in the last three years have resulted in remarkable double-digit growth in brand sales for each establishment.
The increased ownership by Hammerson and APG signals a fresh chapter in Via Outlets’ evolution, setting the stage for sustained growth and positioning the company favorably to outperform the broader retail market. With a laser-focused approach toward strategic expansion and operational enhancement, Via Outlets is well-positioned to tap into the escalating demand for premium outlet shopping experiences throughout Europe.
To learn more about Via Outlets, visit their official website here. For more information on Hammerson and their investment ventures, click here.
