Peel seeks investor for Lifestyle Outlets

Peel Land & Property, part of John Whittaker’s Peel Group, is searching for an investor in its outlets centre business, beginning with its flagship Gloucester Quays site. CBRE has been appointed to find an investment partner initially for the Gloucester outlets, as part of a £150m drive. Sources have estimated that a stake could be worth £120-130m. Tenants at the 1.6m sq ft scheme, which includes 56 retailer outlets, include Adidas, Asics and Levi’s. The 60-acre, £400m development, previously built as a joint venture with British Waterways, was valued at around £350m in 2008 before it launched a year later. The group invested a further £60m in expansion comprising 11 restaurants, a 10-screen cinema and shops in 2012. Peel Group, which owns 27.3% of intu Properties, said that it has “significant investment” plans for its Gloucester Quays, The Lowry Outlet and MediaCityUK businesses. It has also proposed a new £100m outlet centre, the Glasgow Harbour Lifestyle Outlet, in Scotland. Neil Lees, deputy chairman of 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 MediaCityUK. “Our experience-led model of outlet shopping is resonating with consumers and operators alike. We will continue to invest in and grow the Lifestyle Outlets portfolio as we deliver a new type of elevated shopping experience.” 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.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette