England rance slovakia Three outlet centers open for Christmas Ownership changes 2002-2013 Johor Premium Outlets expands

Channel-checking in Florence Value Retail’s Disney synergy 8 new outlet centers planned

A SIMON PROPERTY GROUP / KAEMPFER PARTNERS JOINT VENTURE M C ARTHURGLENGROUP.COM

E NCHANTING

M C A RTH URGLEN

ONE OF TWO LUXURY PIAZZAS AT M C ARTHURGLEN DESIGNER OUTLET NOVENTA DI PIAVE NEAR VENICE

CONTENTS

etite? Got a VRN APPyour free VRN

e for Go to the App Stor est outlet industry lat e th ve app to ha rtips. Check out news at your finge Stats pages the IOJ and Industry r Twitter on the app, plus ou ges. pa r da and Calen Vol. 10 No. 1

PAGE 6 STaFF

Winter 2014

PAGE 10

PAGE 8

Inside 4

Outlet-center ownership changes 2002-2013

6

London Designer Outlet opens

Art Director ext. 4 [email protected]

8

ONE Fashion Outlet Voderady opens

Karen Knobeloch

10 One Nation Paris opens

Linda Humphers

Editor in Chief / Director ext. 3 [email protected]

Randy Gdovin

Advertising Prod. Mgr. ext. 2 [email protected]

Sally Stephenson

Senior Advertising Executive +1 847 835 1617 Fax: +1 847 835 5196 [email protected]

ICSC/IOJ

2519 N. McMullen Booth Rd. Suite 510-356 Clearwater, FL 33761 +1 727 781 7557

ICSC EUROPE

London, +44 20 7976 3100 [email protected]

I david LaRue

ICSC Chairman

12 Channel checking Florence’s outlet offer 16 Spotlight on Asia: Johor Premium Outlets phase 2

opens; Value Retail finds synergy with Disney – again; YO Weihi plans summer opening

18 Outlet Pipeline: Lebanon’s new Centerfalls mixed-use development will include the country’s first outlet project; Designer Outlet Ashford will nearly double its footprint; Neinver’s list of planned centers grows to four; Latvia’s “ first real” outlet center will be a redevelopment; Arcus R.E. advances its outlet plans in northern Italy.

22 Cannes Do: Roppenheim the Style Outlets wins a Mapic

award; Outlet tennis tournament draws a crowd

Michael P. Kercheval

ICSC President and CEO

Rudolph E. MIlian, CRX, cmd, csm Publisher

International Outlet Journal is a publication for the non-U.S. factory outlet industry. Copyright © 2014

Advertiser Index European Outlet Conference................. 21 Fashion House...................................... BC ICSC RECon Latin America.................... 15

McArthurGlen.......................................IFC Neinver.................................................... 5 VRN Subscriptions............................. IBC

Wi nte r 2 0 1 4 I nte rnational O u t l e t J o urna l

3

Research

European Outlet Center Ownership Changes Date Center

City

GLA M2

Seller

Buyer

Price

2002 Messancy Factory Outlet Center Messancy, Belgium 13,700 Group GL International Intervest Retail NV/SA €40 million 2003 Bonaire Valencia, Spain 13,250 Riofisa Rodamco €13.25 million 2005 Zweibrücken Outlet Center Zweibrücken, Germany 23,600 Lehman Bros. Kenmore Property Group €55 million 2005 Festival Park Mallorca Mallorca, Spain 32,000 Festival Parks APN Funds Management €32 million JV Royal Bank of Scotland 2005 San Vicente de Raspeig Alicante, Spain 36,300 ING Real Estate Lasalle Fund Management €36.3 million 2006 B5-Center Wustermark, Germany 11,000 Hammerson Henderson Global Investors €21.8 million 2006 Valdiachiana Outlet Village Valdichiana, Italy 32,000 Gruppo Stilo (Percassi) Degi Deutsche Gesellschaft €88.5 million für Immobilienfonds 2006 Batviastad Outlet Village Lelystad, The Netherlands 14,700 Rodamco Bakkenist & Emmens €38 million 2006 Alcor Plaza Alcorcon (Madrid), Spain 9,200 Ahorro Familiar Exmoor Group / Merril Lynch € 9.2 million (AXA Real Estate) 2007 Airport Praha Prague, Czech Republic 37,000 B. Consulting SEB Immobilien-Investment €93 million GmbH (SEB ImmoInvest) 2007 Marques Avenue Romans, France 11,800 Concepts & Distribution ING Real Estate Development €50 million 2007 Marques Avenue Troyes, France 32,700 Concepts & Distribution ING Real Estate Development €77 million 2007 Franciacorta Outlet Village Rodengo, Italy 33,100 Gruppo Stilo (Percassi), Degi Deutsche Gesellschaft f €202.4 million Craig Realty, Primavera ür Immobilienfonds 2007 Fashion House Warsaw Warsaw, Poland 12,323 Fashion House - AIB Capital Markets Polonia II €45 million The Outlet Company 2007 Alpenrhein Outlet Village Landquart, Switzerland 21,000 MIAG Mutschler ING Real Estate Development N.A. Immobilien AG 2007 Parque Sur Outlet Madrid, Spain 3,950 Parques Reunidos Rodamco €3.95 million 2008 Fashion House Sosnowiec Sosnowiec, Poland 7,808 Fashion House - The Polonia Property Fund II Limited €28 million 2008 Fashion House Gdansk Gdansk, Poland 9,308 Outlet Company €30.5 million 2008 Fashion House Warsaw Warsaw, Poland 4,700 €18 million 2008 Cheshire Oaks Center Elesmere Port, England 31,200 BP-Pensionsfonds, AXA, Henderson Global Investors €475 million 2008 Bridgend Designer Outlet Bridgend, England 21,500 Morley Fund Management for all three 2008 Swindon Designer Outlet Swindon, England 19,500 centres 2008 Atlantic Village Shopping Park Bidford, England 9,200 N.A. Development Securities €23.3 million 2009 Messancy Factory Outlet Center Messancy, Belgium 18,500 Invest Realty Henderson Global Investors €12 million 2009 Roppenheim Outlet-Center Roppenheim, France 23,000 Carlyle Europe Real Estate MAB Development/Neinver SA €50 million 2009 Zweibrücken Designer Outlets Zweibrücken, Germany 27,200 Kenmore Property Group Neinver S.A. on behalf of €110 million Irus European Property Fund 2009 Castel Guelfo Outlet City Bologna, Italy 24,000 ING Real Estate Neinver S.A. on behalf of €41.7 million Irus European Property Fund 2009 Fashion House Sosnowiec Sosnowiec, Poland 4,600 Fashion House - The AIB Capital Markets Polonia II €14 million Outlet Company 2010 Moulin de Nailloux Toulouse, France 22,100 Advantail Corio €44 million 2010 Designer Outlet Troyes Troyes, France 25,500 Henderson Global Investors Resolution Property €85.5 million 2010 Marques Avenue Corbeil Essonnes, France 13,220 MRM (CBRE Investors) AEW €51 million 2010 Fashion House Gdansk Gdansk, Poland 7165 Fashion House - The AIB Capital Markets Polonia II 24 million Outlet Company 2010 Fashion District Melili Outlet Melili, Italy 32,100 Fashion District Promos Srl €75 million 2011 Roubaix Designer Outlet Roubaix, France 17,245 Henderson Global Investors Resolution Property €23 million 2011 Mallorca Designer Outlet Mallorca, Spain 34,099 APN Funds Management Värde Partners €34.1 million JV Royal Bank of Scotland 2012 Designer Outlet Wolfsburg Wolfsburg, Germany 6,000 OCI Europe Capital for Europa Fund III N.A. 2012 Rosada Rosendaal, The Netherlands 16,000 CBREI, DRET Masterfund CV Resolution Property €33 million 2012 Lowry Outlet Mall Salford Quays, England 28,000 Emerson Group The Peel Group N.A. 2013 Marques Avenue Romans-sur-Isere, France 17,000 CBREI, DRET Masterfund CV AEW €50 million 2013 Franciacorta Outlet Village Rodengo, Italy 33,100 Degi Deutsche Gesellschaft Blackstone €127 million für Immobilienfonds 2013 Livingston Designer Outlet Livingston, Scotland 27,720 Land Securities, McArthurGlen LaSalle Investment Management €62 million Group, Richardson Property Group 2013 Ownership interest in five of 20 (in Naples and Venice, Italy; Existing McArthurGlen Group Simon Property Group €435 million existing McArthurGlen centers Ashford, England; Parndorf, 139,500 for 45 percent and one planned project Austria; Roermond, The Planned interest Netherlands), plus one 18,600 planned project in Vancouver, Canada Source: Sven Buchsteiner, Senior Consultant, CBRE GmbH | Retail - Consulting & Research, Frankfurt

4 I nternationa l Ou tle t J ournal Winter 2014

Experience, Profitability and Future Because we are committed to a quality shopping experience based on location, architectural design, brand mix and services. The Style Outlets and FACTORY outlet centres offer choices that are functional and efficient while remaining attractive to shop operators and visitors. Because we have developed marketing and leasing strategies that ensure successful results, increasing the foot traffic and sales year after year. Because we develop and manage our outlet centres using principles of economic and environmental sustainability. We are creating the future of retail in Europe. 311,600 SQ.M.

1,450 SHOPS SPAIN GERMANY FRANCE ITALY POLAND PORTUGAL

neinver.com

Roppenheim The Style Outlets

Center Opening

London Designer Outlet greets Wembley shoppers Quintain’s 350,000-sf outlet center completes the first phase of redevelopment of the 8 million-sf Wembley Park in London. The launch of London Designer Outlet at Wembley Park on October 24 saw 21,500 visitors, and that was just the warm-up. By the end of the four-day weekend, 85,000 shoppers had come to the new outlet center and by the end of November, 200,000 had made the trip. What attracted all those shoppers could have been the NFL International Series between the San Francisco 49ers and the Jacksonville Jaguars playing at the adjacent Wembley Stadium on Sunday, October 27. Or the attraction could have been all that World Cup and Rugby action, or the Bollywood dancing, Dohl drummers and stilt artists who performed during the grand-opening ceremony. Or people might have been drawn to the 350,000-sf center’s nine-screen cinema or its 15 dining options. Or the gloriously sunny weather that day (the center is open-air) or all of the above

6 I nternationa l Ou tle t J ournal Winter 2014

LDO completes the 1.8 million-sf phase 1 of the Quintain’s redevelopment of the 8 million-sf Wembley Park.

plus the outlet stores that shoppers said they wanted – at prices they said they wanted – might have done the trick. Whatever the reasons, the shoppers came in droves and the only grumbling heard was from the long lines of people waiting to get into various stores. Quintain Estates and Development, which is redeveloping the 8 million-sf Wembley Park, could be looking at a fine success with its first outlet center. When the developer began planning a retail component for the project, shoppers were polled on what exactly they wanted at Wembley. They unequivocally stated they craved athletic apparel, shoes and sportswear at great prices. And Quintain has delivered. Although only 32 tenants and restaurants were open for the launch, the full roster of 70 shops and eateries is expected to be completed this year. At launch, the center was 80 percent leased. London Designer Outlet’s catchment is 10.4 million people within a 60-minute drive and 782,000 within a 20-minute drive. LDO also has all the great access associated with urban centers – two train stations, two tube stations and road links to several major motorways. So the expectation of drawing 8 million visitors a year isn’t too far-fetched. The opening of LDO also marks the completion of the 1.8 millionsf first phase of Wembley Park. Other components in the first phase include a four-star, 361-bed Hilton Hotel and convention center; a civic center/library/events hub that employs 2,000 people; a 660-bed student housing project; and a multi-level parking garage. Phase 2, due to commence this year, will include residential development. In all, Quintain will invest €2.5 billion in the redevelopment of Wembley Park. c

London designer Outlet tenants Adidas All Saints Asics/Onitsuka Tiger Bags Bhavi Beauty Bjorn Borg Body Shop Chapelle Cineworld (9 screens) Clarks Crabtree & Evelyn Daniel Footwear Denby Gap Guess H&M LK Bennett Lindt Luke 1977 Marks & Spencer Outlet New Balance Nike Factory Store Pavers Phase Eight ProCook Red 5 Rockport Skechers

Skopes Sunglass Hut Superdry Factory Store Tog 24 Trespass Villeroy & Boch Viners Restaurants

Cabana Caffé Nero Chaboba Coast to Coast Costa Coffee Frankie & Benny’s Handmade Burger Co. Jimmy’s Las Iguanas Pizza Express Pret a Manger Starbucks TGI Fridays Wagamama Nando’s Ping Pong Subway Prezzo Wenzel’s

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Center Opening

ONE Fashion Outlet opens Drawing from four nearby countries, the new outlet center is on the D1 Motorway that runs all the way across Slovakia. When Slovakia’s first outlet center, One Fashion

Outlet Voderady, opened in late October 2013, the €75 million project saw nearly 50,000 bargain-hungry, brandobsessed shoppers during the first weekend. Drawing from the 4.8 million people who live within a 90-minute drive of the center (from Slovakia, the Czech Republic, Austria and Hungary), One Fashion Outlet will attract most of its shoppers from the capital city of Bratislava, just 30 minutes southeast. Bratislava has the highest purchasing power in Slovakia – consumer spending is expected to increase 38 percent by 2016. Additionally, Slovakia’s flat income tax rate of 19 percent has attracted many foreign investors, including VW, Peugeot, Kia, Samsung and Sony. Slovakian real estate developer Realiz, working with outlet specialists Rioja Developments, first announced the

Slovakian developer Realiz made sure the outlet center gained traction by hiring several outlet specialists to handle leasing, marketing and operations. 8 I nternationa l Ou tle t J ournal Winter 2014

The design of ONE Fashion Outlet in Slovakia incorporates a landscaped lake to create a leisure destination for shoppers.

project in 2010. A site fight quickly arose when IPEC Group began marketing an outlet project 15 minutes closer to Bratislava. Realiz and Rioja ramped up their efforts and brought on board outlet specialists Rohleder Lumby, SJ International and Freeport, which will operate the center. Realiz/Rioja also hired outlet leasing veteran Graham Coxhead away from the competition, a sly move. The 15,000-m2 phase 1 opened 75 percent leased with more than 50 tenants, including Adidas, Benetton, Levi’s, Lindt, Nike and Tom Tailor. Two more phases of 10,000 m2 each are planned. Freeport expects the remaining 15 tenants to be open by summer, and the operator expects the center to attract 1.5 million to 2 million visitors a year. Designed by Holder Mathias, One Fashion Outlet features a covered shopping street placed around a series of open squares. The scheme is distinct with timber-clad arcades and courtyards, a main square and a landscaped, 5,000-m2 lake with timber-decked bridges and floating pavilions. The center has parking for 2,500 cars. “We are delighted to have been able to work with One Fashion Outlet on an innovative design that creates a new leisure and retail destination,” said Peter Gamble, director of Holder Mathias. “We have designed a place for people to enjoy their shopping and relax in a crisp, contemporary environment.” Holder Mathias, one of Building magazine’s Top 100 Architects, has delivered design and planning services to the outlet sector for McArthurGlen, MAB and other developers. One month after opening, One Fashion Outlet Voderady was named the best shopping center in the Central Eastern European region by CEE Construction & Investment Journal. c

One Fashion Outlet Voderady tenants 69 Slam Adel design Adidas Aftershock Arqueonautas Baldinini Benetton Berndorf Sandrik Bottles & Co. Brands Store Candies Couture Cross Jeans DAJAR Denim Outlet ECCO Envy Gant Gaudí Handy Man Instyle Jack Wolfskin Jcolor John Garfield Karrelli Klenoty Aurum Lee Cooper Levi’s Luxury Mall

Magic Kids (Disney) Marc Picard Marina Militare McGregor MET Mustang Nike Factory Store North Face Parfems Puma Retro Jeans Salomon Steffel Svet Kávy Swell Tick Time Out Tom Tailor Trekland T-store VIP Fashion Restaurants:

Café de Nuage Coffee and Vine Paleta Foodinlove Lago by Towers One Coffee

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Center Opening

Marie Antoinette would love her new neighbor One Nation Paris, which opened near Versailles in December, could redefine the future of outlet center design. History knows that Marie Antoinette lived a privileged life dedicated to luxury and fashion, so it’s quite fitting that a new neighbor of her former home in Versailles has the same haute-couture outlook. One Nation Paris, Catinvest’s €107 million retail project, opened December 4, 2013, just 15 minutes west of Versailles and less than an hour from Paris’ city center. The center, which can accommodate 112 tenants, opened more than 70 percent occupied with a line- up that includes Armani Outlet, BCBGMaxazria, Cacharel, Calvin Klein Collection, Herve Leger, Jeep, Liu Jo, Pearl Izumi, Petit Bateau, X-Bionic, Yves Delorme and Zadig & Voltaire. The remaining 32 spots will be filled this year, Catinvest says. The 24,000-m2 One Nation Paris, part of the Grand Plaisir retail park in Les Clayes-sous-Bois, expects to attract 5 million visitors annually. The center’s market is Europe’s most densely populated area – 11 million people live within a one-hour drive. The area also has high consumer-purchasing power due to an average annual income of more than €45,000. Additionally, some 10 million tourists visit Château de Versailles every year (thank you, Marie!); Paris draws 40 million visitors a year and Grand Plaisir receives 20 million a year. Aside from a stellar brand list and better-than-solid demographics, One Nation Paris rewrites the book on outlet-center design. The scheme’s two-level layout stretches past three patios, the largest of which features a glass atrium 70 meters long. Elliptical openings above allow natural light to shine through both levels, and sweeping canopies provide weather protection. Outlet industry veteran Neil Chapman of Chameleon Retail was impressed by the new center when he visited during the opening. “It is a new and exciting advance2 Catinvest’s 24,000-m ONE Nation Paris outlet center serves the City of Light’s ment of the outlet concept in Europe,” densely populated and affluent western suburbs. 10 I nte rnationa l Ou tle t Journal Winter 2014

ONE Nation Paris’ two-level layout includes three patios with seating and greenery.

Chapman said. “The stunning design and clever layout is a revelation. There are open, landscaped courtyards, a great combination of finishes and interesting public art. The development team at Catinvest should be congratulated for bringing such a great center to market and for making such splendid progress on outlet center design.” Catinvest intends to export the One Nation concept to other European capital cities. c

One Nation Paris tenants 123 7 For All Mankind Agnes B Allegri American Vintage Antik Batik Arche Armani Outlet Basler BCBGMaxazria Beaumont Amsterdam Bensimon Concept Store Outlet Blanc Des Vosges Cacharel

Calvin Klein Collection Crea Concept Desigual Dider Parakian Dirk Bikkembergs DP AM Eden Park Eleven Paris Esprit Stock Fil d’Or Freeman T. Porter Garnier Thiebaut Georges Rech Stock Godiva

Gontran Cherrier HE Hardrige Herve Leger Home & Cook Istella Forest Jeep Kooples Sport Kusmi Tea Lamarthe Le Cap Les Petites Levi’s Lindt Little Marcel

Liu Jo Lola Lole Louis Quatorze Madura Majestic Filatures Mango Mariner Max & Moi Missary Mobicaze Pearl Izumi Pepe Jeans Petit Bateau

Pull-in Refectoire Rossignol Saint James Ne de la Mer Samsonite Serge Lesage Spontini Stradel’s Sun Factory The Shop Triumph X-Bionic Yves Delorme Zadig & Voltaire

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Channel Check

Playing to the traveling shopper A visit to McArthurGlen’s center near Florence becomes love at first sight for IOJ’s U.S.based retail writer. B y MA R IE DR IS COLL C o n t r i b uti ng Writer

In the heart of Tuscany, a

30-minute drive north of Florence, lies McArthurGlen’s Designer Outlet Barberino. Opened in 2006, the center is invitingly new, a sharp contrast from the 500- to 800-year-old cobblestone streets and squares of nearby Florence. The center’s design is inspired by Tuscany with its Medici palaces, Renaissance villas and bridges spanning the Arno. Italians know how to bring art into everyday life and McArthurGlen is religious in its zeal to create a superb brand experience for all visitors in every boutique. Store fixtures convey luxury, and sales associates are trained to communicate with the many international travelers frequenting the center.

The center has steadily grown since opening, with the final portion of a 64,800-sf expansion to be completed in March. That phase will bring the center to 291,600 sf. Among the new tenants joining the center are Ralph Lauren Kids, Michael Kors, Nike, Tommy Hilfiger and two restaurants. Although 80 percent of Barberino’s sales come from the 5.7 million Italians in the center’s 90-minute catchment, the developer is also targeting traveling shoppers. The strategy is working: Barberino saw a 50 percent year-overyear increase in international visitors for the 12 months ended October 2013, and center traffic rose more than 10 percent in the first 10 months of 2013. Barberino is no stranger to competition with Florence and its hundreds of stores (ranging from Gucci and Chanel to H&M and Zara), as well as the many shops operated by Florentine artisans. Tuscany is also home to two renowned outlet complexes, The Mall, with Gucci, Armani, Burberry and Fendi, and the Prada outlet, called Space. What sets Barberino apart is its delightful ambience and luxury service.

Focusing on consumers McArthurGlen is also working on leasing to brands that are favored by shoppers from Russia (which accounts for half of Barberino’s international traffic), China and Brazil. Coach is one brand high on the list, according to center manager Chiara Bellomo, who was previously with Salvatore Ferragamo. Her strong customer service background is exactly what’s needed to build consumer trust in the outlet proposition. A recent study by Forrester Research, “A New Generation of Clienteling” addresses consumers’ growing skepticism that sales associates are the best source of product information. This distrust emanates from the growing ubiquity of smart phones and consumer access to data. According to the survey of 4,500 U.S. online consumers, Forrester found

After opening in 2006, McArthurGlen’s Barberino Designer Outlets has steadily expanded to its current size of 291,600 sf. 12 I nte rnationa l Ou tle t Journal Winter 2014

The 100 tenants at Barberino Designer Outlets include Prada, Dolce & Gabanna, Roberto Cavalli and Frette.

that only 19 percent believe sales associates have relevant information and that consumers prefer to interact with mobile-equipped sales associates. Bellomo has structured a training program for the center’s 1,000 sales associates. The five-session program, recognized by the Italian Chamber of Commerce, focuses on multicultural differences to enrich the customer experience. She escorted me around the center’s 100 stores, pointing out the popular Italian brands, such as Golden Lady, Pinko and MCS We the People, as well as the international brands such as Prada, Ralph Lauren, Calvin Klein and Dolce & Gabbana. Our first stop was Prada, that mecca of fashion and accessories. As soon as we crossed the leasehold line friendly sales associates greeted us, eager to show us the latest fashion arrivals, look for merchandise in our sizes and help us choose pairs of Prada shoes. Dario helped me with a pair of fashion pants of metallic jacquard that had just arrived. They were my size and a steal at €35 or just under $50. Can you imagine Prada pants for €35 Only in my dreams!

It’s love Barberino quickly became one of my Top 10 shopping destinations. I thought it couldn’t get better, but that very high, elevated plane of expectation, execution (Continued on page 14)

Designer Outlet Barberino Tenants Adidas Adidas Style Alcott Baldinini Belstaff Benetton Bialetti Industrie Blumarine Boggi Milano Borbonese Borgo Café Bormioli Rocco Bose Bottega Verde Brums Bruno Magli Caffe Mediceo Calvin Klein Collection Calvin Klein Jeans Calvin Klein Underwear Calzedonia Ca’Puccino Caractere Carlo Pazolini Carlo Pignatelli Carpisa Clarks Class Roberto Cavalli Coccinelle Corso Roma David Mayer Naman Desigual Diesel Kid Diffusione Tessile Docksteps Dolce & Gabbana

Douglas Elena Miró Eredi Pisanó Flavio Castellani Fornarina Frette FROM by Vestebene Furla Gallo Gas Geox Outlet Giunti al Punto Golden Lady Store Guess Harmont & Blaine Home & Cook Il Lanificio Il Torracchione Jeckerson John Ashfield K.I.D.S. La Casa Italiana Lacoste Lee Les Copains Levi’s Lindt Lovable Planet Playtex Malloy Massimo Rebecchi MCS We The People Michael Kors Missoni Moorer Moreschi Motivi

Motostore Napapijri Nike Factory Store Pal Zileri Parah Pinko Piquadro Pollini Polo Ralph Lauren Polo Ralph Lauren Children Prada Puma Pupa Outlet Q come Quore RCR Richmond Rifle Samsonite Scervino Street Segue Sia Silvian Heach Slam Store House Sunglass Time Superga Tailor Club The Bridge The End Timberland Tosca Blu Trussardi Ugo Colella W.O.K. Wrangler Yamamay

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Channel Check (Continued from page 13)

and great merchandise at great prices never faltered. Prada, in particular, has soaring service standards. The sales associates are equipped with Bluetooth devices for relaying product style and size requests to off-the-floor associates who scour the inventory and bring the goods to the selling floor. This way, the sales associate can continue clienteling and selling. While we waited for my shoes to arrive, Prada’s store manager Massimilano Artini was quick to show me some of the latest accessory arrivals, including flower handbags I’d seen in Bloomingdale’s in New York City last spring. The boutiques at Barberino were a real find for this New York shopper. One of the largest is Diffusione Tessiles, a multi-branded woman’s apparel and accessories chain with deep discounts on brands from the Max Mara Group, including Max Mara, SportMax, Marina Rinaldi, Max & Co. and Pennyblack. The original labels have been removed and replaced, but anyone familiar with the aforementioned brands recognizes the sumptuous fabrics and design quality. I truly regretted having hard-case luggage when I saw a fabulous coat (Max Mara is renowned for its quality alpaca and wools) at 75 percent off and a steal at €140. I had to buy a matching gold metallic wool cap and shrug for a whisper that perfectly matched the wonderful trousers I’d bought at Prada. The Missoni boutique was replete with intaglio knits and zigzag motifs in a rainbow of colors. It was hard to tear myself away, but I kept thinking about my unforgiving luggage. Yes, I could have bought a Samsonite at Barberino and thrown fiscal caution to the wind, but I decided to check out a few more stores, including the newly expanded Ralph Lauren, which is among Barberino’s five most productive brands. The others are Prada, Diffusione Tessiles, Adidas and Guess. Class Roberto Cavalli is a huge draw for me, and after thumbing through the gorgeous puffer coats and jackets in midnight blue at €440 and fur-trimmed leather and outerwear, I zeroed in on a discreet rack in the back of the store offering 70 percent off and more. To my delight I found the animal print Cavalli is famous for in a slinky day-to14 I nte rnationa l Ou tle t Journal Winter 2014

Despite competition from Florentine retailers and two renowned outlet complexes, Barberino Designer Outlets is a favorite with shoppers because of its ambience and luxury service.

date dress, for €99, OMG. And it fit! Barberino I love you!!!!

Pure Italian luxury On to Dolce & Gabbana, which is, for me, the epitome of Italian sensibility. I love the mix of lace, animal print, red, black and jewels. Beyond sexy and working for everyone are basic-black wool work suits (lined in a leopard print) and lady dresses that look equally good on 17-year-old models and 65-year-old doyennes. The accessories are to die for with strong, framed-leather handbags like the ones Tippi Hedren carried in The Birds and Jackie Kennedy wore during the Camelot years. For me, the bags convey feminine strength, linear grace and solidity; I just want one. Dolce & Gabbana’s fabrics are exquisite; this is why we love luxury brands. The designs were last year’s, but that hardly matters. A Dolce & Gabbana dress, suit, handbag or pair of shoes is forever.

Bellomo led me to a trendy new Italian contemporary brand, Pinko, and I quickly became an advocate. Plush fabrications, lean lines, sparkle, fur and leather. Still cognizant of the back I will break if my luggage gets any heavier, I opt for a charming crystal-adorned caramel-colored bangle. Pinko isn’t in the U.S., yet, but it’s available in Europe, China and Saudi Arabia. I’m adding this brand to my radar screen. I left Barberino truly shopped out! My sensory functions were in overdrive with all the beautiful merchandise and I had very little will power left to deny the shopping extravaganza Barberino provides. I shall return – with more money and lighter luggage. c Marie Driscoll, CFA, CEO & Chief Consultant, Driscoll Advisors, is an award-winning retail analyst who focuses on apparel brands, retailers and luxury goods. She may be reached at [email protected].

April 7 – 10, 2014 Cartagena de Indias Convention Center Cartagena, Colombia www.icsc.org/2014RLA

Register now for the largest retail real estate conference and exhibition in its class in Latin America. For more information visit: www.icsc.org/2014RLA

Asia EOC recap

Johor phase 2 opens

The second phase of Johor Premium Outlets in Malaysia opened in November 2013, according to the developers, Genting Group and Simon Property Group. The 100,000-sf expansion adds 40 new stores, bringing the center’s total to 120 outlet units in 298,000 sf of GLA. The center, which opened in 2011, is at the intersection of the North-South Expressway and Second Link Expressway, close to Senai Airport and less than an hour’s drive from the city center of Singapore. Tenants in the center’s first phase include Adidas, Armani, Brooks Brothers, Burberry, Canali, CK Calvin Klein, Coach, DKNY, Esprit, Ermenegildo Zegna, Evita Peroni, Fossil, Gap, Geox, Guess, Lacoste, Levi’s, Michael Kors, Nike, Oroton, Royal Selangor, Salvatore Ferragamo, Swiss Watch Gallery, Timberland, Tommy Hilfiger, Tumi and Victoria’s Secret. Phase 2’s roster includes American Eagle, BCBG, Calvin Klein Jeans, Calvin Klein Underwear, Furla, Guy Laroche, Hugo Boss, Kate Spade, LeSportsac, Paris Hilton, Swatch and Tory Burch.

Johor Premium Outlets is the first Western-style outlet center to open in Malaysia.

Johor Premium Outlets, the first American/European-style outlet center to open in Malaysia, has been so well-received that it has spawned two more planned projects. Both are three hours north of Johor and are scheduled to open in 2015. Horizon Group Properties of the U.S.

and Mainstay Properties of Malaysia are developing the Outlet Shoppes of Greater Kuala Lumpur in Sepang. Malaysian Airports Holdings has partnered with Mitsui Fudosan on developing Mitsui Outlet Park Kuala Lumpur International Airport within the premises

Johor Premium Outlet tenants Adidas Aigner Akemi Uchi Akemi Uchi Galleria American Eagle Outfitters Armani Exchange Armani Outlet BCBGMAXAZRIA Beauty Scents Body Shop Outlet Bold & Beautiful Bonia Brabantia Braun Buffel Bread & Butter Brooks Brothers Factory Store Burberry Calvin Klein Jeans Calvin Klein Underwear Canali Carlo Rino Charles & Keith Reductions Chocolat 5D Studio City Chain CK Calvin Klein Clarks Coach

Coach Men’s Columbia Cosmetics Company Cosmetics & Designer Fragrances Cotton On Cotton On Kids Diane von Furstenberg DKNY ELLE Ermenegildo Zegna Esprit Evita Peroni Fidani Chocolate Florsheim Flow Fossil Furla G2000 Outlet Gap Kids Gap Outlet Geox Guess Guess Accessories Guy Laroche Hang Ten Hugo Boss Hush Puppies

16 I nte rnationa l Ou tle t Journal Winter 2014

Kate Spade La Senza Lingerie Lacoste Outlet Leather Avenue LeSportsac Levi’s Outlet Store Maybank Michael Kors Nike Factory Store Nose Optical 88 Oroton Factory Padini Outlet Store Pan-West Paris Hilton Pedro Outlet Polo Ralph Lauren Poney Outlet Puma Quiksilver Raoul Renoma Paris Rip Curl Rockport Roxy Royal Selangor Sacoor Brothers

Salvatore Ferragamo Samsonite Factory Outlet Sembonia Skechers Soda South China Sea Springfield Stride Rite Sunglass Hut Swatch Swiss Watch Gallery Timberland Time Lab Tomei Tommy Hilfiger Topshop Tory Burch Tumi Universal Traveller Versace Company Store Victoria’s Secret Vincci Voir Gallery Watch Station International Wear & When World of Outdoors

of that airport, which is about 40 minutes south of Kuala Lumpur. Simon Property Group operates 81 Premium Outlet Centers, including 65 in the U.S., nine in Japan, three in South Korea, and one each in Canada, Malaysia, Mexico and Puerto Rico. Genting Berhad’s companies, subsidiaries and affiliates are involved in various businesses, including leisure and hospitality, power generation, palm-oil plantations, property development, biotechnology and oil and gas. Genting Berhard employs 58,000 workers and operates 485 million sf of prime resort space and 565,000 acres of plantation land.

Value Retail plans outlet village adjacent to Shanghai Disney With its first outlet center in China just weeks from opening, Value Retail China has announced plans to develop a second project there. The London-based developer, known for its nine Chic Outlet Shopping villages in Europe, and its partner Shanghai Shendi Group, will develop Shanghai Village adjacent to the Shanghai Disney Resort, scheduled to open at the end of 2015. Shanghai Shendi Group is the lead developer of the Shanghai International Tourism and Resorts Zone, which includes the Shanghai Disney Resort. Shanghai Village won’t be the first time Value Retail has found synergy with Disneyland: In Y2K Value Retail opened La Vallée Village next to Disneyland Paris. That center has evolved into one of the most productive in VR’s portfolio, so the opportunity to repeat the winning formula was too good to pass up. “We are delighted to again be a neighbor with Disney and to draw on the successful experience of La Vallée Village, which today is one of the most successful shopping destinations in Europe,” said VR chairman Scott Malkin. “And we expect Shanghai Village to become the most important outlet shopping location in Asia.” Value Retail China’s first development, Suzhou Village, is 50 miles west of Shanghai on the Yang Cheng Lake Peninsula in historic Suzhou. The 27,000-m2 first phase will open in the first half of this year. Although tenant

Outlet project ready to pop open in China With construction well under way before the project was even announced, Yurun Holding Group Co. said in November that it will open its first outlet project, YO Weihai, this summer in Weihai, in Shandong province. The 24,000-m2 outlet center will be part of the Yurun North-Gulf Happy Coast development that will include family entertainment, fine dining and leisure venues. The complex will also include a 50,000 m2 Sheraton Hotel, a 20,000 m2 Natural Hot Springs Health Spa Centre, a 4,600 m2 private club and 90,000 m2 of hotel-style apartments and residential housing. Yurun Group has plans for at least 20 more similar mix-use developments that combine shopping with lifestyle venues. In China, the retail portion of a development must be finished before construction can begin on residential units, so there is a rush to open YO Outlet. And the outlet structure is

names weren’t available, Value Retail says the lineup of international brands will be consistent with those found at Bicester Village and La Vallée Village. Suzhou Village, designed like an Italian resort town, will serve a catchment of approximately 40 million

almost finished, according to Robert Van Den Heuvel, director of One Outlet Services, which is handling leasing and management of the outlet center. “The Chinese work unbelievably fast,” he said. “We’re aiming at opening in the summer if the tenants can move that fast. Apparently they are able to do that in China. They don’t need long periods to work out lease details like they do in Europe and the United States.” Van Den Heuvel said the project was being well-received by the brands, who are eager to join a project in the heavily populated Shandong province. Weihai’s population is nearly 3 million and the city is known as a major seaport. Yurun, which employs more than 100,000 workers, is China’s 7th largest privately owned company. The group’s 200 subsidiaries are active in food processing, logistics, department stores, tourism, real estate, finance and other sectors.

people within a one-hour drive and 80 million within a three-hour drive. The center’s site is on the western shore of Yangcheng Lake, 20 minutes from Shanghai, one hour from Nanjing and easily accessible from the Yangcheng Lake exit of the Expressway.  c Winte r 2 0 1 4 I nte rnational O u t l e t J o urna l

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Newrecap projects EOC

Centerfalls development to include Lebanon’s first outlet project

Centerfalls, designed by Design International of London, will be developed in an affluent suburb of Beirut by SIDCOM.

Lebanese developer SIDCOM is planning to open Centerfalls Designer Outlet Resort in the spring of 2016. Centerfalls will be a 30,000-m2 retail/leisure project 20 minutes from Beirut, overlooking the Bay of Dbayeh in the Metn region. The area is one of the most affluent in Lebanon with a catchment that includes 750,000 people in the immediate area, and more than 2 million in greater Beirut. More than 5 million tourists and business travelers visit the area each year, taking in such popular tourist attractions such as Bikfaya, Sannine and Naas, which are just 10 minutes from Centerfalls’ site. Echoing the spectacular architecture seen in the Middle East in the last 10 years, the seven-story Centerfalls has been designed by London-based architect Design International with three components: 14,100 m2 of outlet GLA; 12,300 m2 of resort space; and 3,600 m2 of gourmet food offers. Centerfalls’ name comes from the gigantic waterfall – possibly the largest in any shopping center – that cascades from a terrace beneath the roof down five levels into a large seating area surrounded by designer outlets. The center will also feature three entrances on three different levels, a neighborhood community center with a gourmet market and family entertainment district, a boutique hotel and spa, a cinema complex and Lebanon’s first off-price luxury department store.

a 10-minute drive from the thriving city of Turin and an hour’s drive from Milan. Set to open in 2015, the 19,500-m2 center’s catchment includes 7 million people within a 90-minute drive and 11 million within a two-hour drive. Turin is a dynamic city known throughout Europe for its cultural attractions, vineyards and ski resorts. More than 11 million tourists visit each year, and over the past eight years, tourism in the region has grown by 42.8 percent, according to the Italian government.

The second project, the 13,000m2 San Pellegrino Outlet Village, scheduled to open in 2016, will be part of the redevelopment of the town famed for its sparkling springs near Bergamo. Close to some of Italy’s most famous skiing destinations as well as Lago di Como, Lago Di Garda, Verona and Venice, San Pellegrino is finding a new niche as a luxury commercial and holiday destination. A new spa created through the renovation and adaptation of the Hotel Terme and the Art Nouveau casino

Arcus R.E. advances its outlet pipeline in northern Italy Following the opening of its 24,000-m2 Sicilia Outlet Village in 2010, Arcus Real Estate has been busy with that center’s 4,000-m2 expansion opening this year, and finding sites in northern Italy for two more outlet projects. The first of the new phase 1 schemes is Torino Outlet Village, which is just 18 I nte rnationa l Ou tle t Journal Winter 2014

Torino Outlet Village (above) and San Pellegrino Outlet Village are both poised to serve vacation travelers to northern Italy.

complex will be accompanied by a new urban center, and a new residential development will be combined with highend shopping. San Pellegrino Outlet Village will be in a pedestrian area in the middle of town. Milan-based Arcus Real Estate was founded in April 2013 by Victor Busser Casas, whose outlet experience includes stints with Neinver Italia and McArthurGlen Group.

Latvia’s “first real” outlet center planned BPT, an asset management com-

Lithuania and Estonia. BPT has hired several European outlet companies, including Rohleder Lumby Retail, SJ International Outlet Solutions and Holder Mathias Architects, to work on the project. “There have been several attempts to develop factory outlet projects in the Baltic States,” said Simon Rohleder, “but for various reasons their realization has been cancelled or postponed indefinitely. As a result there are several unconvincing examples in the outlet retail segment where shops sell a limited number of goods and have yet to meet the definition of a real factory outlet concept – surplus stock from the factories sold directly to the public.” Rohleder said the lack of outlet retail-

ing in the Baltic region is an advantage for BPT’s Olimpia project. “The factory outlet concept requires substantial foot fall and a dense population base, as well as the absence of other outlet centers nearby,” he said. “All of these conditions correspond to the intended location for the factory outlet in Riga, and we are confident that it will determine the success of the new center. Unlike some earlier attempts in the Baltics, the project is secured with an existing building, a dedicated owner and a strong blend of internationally and locally experienced factory outlet experts.” Latvia joined the European Union in 2004 and adopted the euro on January 1, 2014, thus becoming part of the Eu-

(Continued on page 20) pany with offices throughout CEE and Russia, believes it can redevelop a shopping center in Riga, Latvia into the “the first real factory outlet project in the Baltics.” The redevelopment and retenanting of Olimpia into an 8,000-m2 outlet center with 30 brands is already under way with the launch planned for the end of this year. In addition to outlet tenancy, the center will also include the existing grocery store and fitness center, plus an upgraded food court. Olimpia is on the left bank of the DaugavaRiver on Kipsala Island, a growing part of Riga. The shopping center is a short walk from Riga Old Town, on the main road toward Riga International Airport, which has approximately 10,000 visitors a day. The catchment includes 714,000 people within a 30-minute drive and 1.3 million within a 60-minute drive. The center serves shoppers The redevelopment and retenanting of an existing shopping complex in Riga, Latvia, will hasten the opening of the country’s first outlet center. in three Baltic countries: Latvia, Winte r 2 0 1 4 I nte rnational O u t l e t J o urna l

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New projects (Continued from page 19)

rozone. Rohleder said the move would boost tourism, as the Riga airport is the major air hub for the Baltic States. “International brands will feel more comfortable with the euro as the currency,” he said, “and they’ll be more prepared to consider Riga along with Tallinn Outlet [four hours south in Estonia] for Baltic expansion.”

OUTLET EXPANSION

Neinver’s pipeline grows to 4 schemes Neinver, the second-largest

operator of outlet centers in Europe, has four planned projects in its pipeline. The new projects will add 86,000 m2 to the developer’s 311,600-m2 portfolio of 15 outlet centers in six countries. l Algarve the Style Outlets in Portugal has been on Neinver’s planned list since 2008. Although it was on a back burner for a few years, good sites never die, and Neinver expects to open the 23,500-sf center in 2016. The site is 12 km from Faro International Airport; Faro is the capital of Algarve and is famous for its beaches, flamingos and high influx of visitors. Algarve the Style Outlets is Neinver’s second development in Portugal after Vila do Conde the Style Outlets, in the Oporto region, which opened in 2004. l Viladecans the Style Outlets, 10 minutes from Barcelona, 10 minutes from El Prat International Airport and 10 minutes from the seaport, will be the first of the Neinver’s planned projects to launch. The 26,500-m2 center is scheduled to open by the end of 2015. l Amsterdam the Style Outlets is Neinver’s first foray into a new country in many years. The 19,000-m2 center, scheduled to open in 2016, will be in Sugar City, which is easily reached from the A200 via the N200. Also, the Amsterdam-Haarlem train will have a station just in front of the center. l After its success with Zweibrucken the Style Outlets near Frankfurt, Neinver is extending its portfolio in Germany with a second center, Werl the Style Outlets. The 17,000-m2 center is in the North Rhine-Westphalia region with a catchment of 18 million people within a 90-minute drive. The opening is set for 2016. Neinver and MAB will co-develop the projects in Amsterdam and Werl.  c 20 I nte rnationa l Ou tle t Journal Winter 2014

Designer Outlet Ashford to nearly double footprint McArthurGlen is preparing to submit a planning application in early 2014 to extend the 182,700-sf Designer Outlet Ashford by 150,000 sf. If the plans are accepted, construction will begin later this year with the opening planned for 2016. “With the planned expansion, we’re looking to create the next generation of designer outlet,” said Gary Bond, MCG’s managing director of development. “We plan to take the customer experience to a new level by bringing in exciting new brands, as well as café and restaurant concepts.”

In addition to expanding the 14-year-old Ashford center, which is about 40 minutes from London via high-speed rail, MCG will soon add a 53,800-sf expansion to its 17-year-old, 206,600-sf Designer Outlet Swindon. “We have been looking at expanding a number of our Designer Outlets in the UK,” Bond said, “in particular where we have strong support from local councils who understand the benefits of creating a shopping destination that acts as a tourism magnet for the local region.”

cannes do

Outlet tennis tournament in Cannes proves epic The 2013 Cannes International Tennis Tournament

held during Mapic in November proved to be an epic battle due to the sudden-death, single-set final finish with a 9-7 (no tie break) victory for Sebastiano Jaksetich (SJ International) and Pieter Van Voorst Vader (McArthur Glen) over runners-up Luca de Ambrosis Ortigara (DEA Real Estate Advisor) and David AtcherleySymes (Land Securities). The event, primarily held for retailers, agents, developers and operators from the outlet sector, saw its most closely contested finish since the tournament started in 2006. The winners picked up the trophy and their Tim Sansom Commemorative tankers (in honor of the Chameleon Retail partner who passed away in 2012) as well as champagne. Best performing British players were David Atcherley-Symes and  Nick Morgan of KLM. They collected meals-for-four vouchers from Stephen Greene, chairman of Ed’s Easy Diner, one of the event sponsors along with Peel Outlets, L’Occitane, Spectators and players had a smashing time at the Cannes International Tennis Tournament. FSP, Ronan Developments, Original Penguin, Exit Interiors, Magdus and Lordland International. The early-morning tournament brought together competitors from Germany, France, Italy, Argentina, The Netherlands, USA and Great Britain. And some 75 others from as far as Switzerland, Russia, Ukraine and Austria watched and breakfasted as 24 players took to the courts in a fast-doubles league format and then elimination at semi-final. Event organizer Neil Chapman of Chameleon Retail said that aside from really good tennis being played, “the tournament is a unique chance for the outlet industry specialists to come together to relax and compete in a social and sporting event during a key week. L to R:  Runners-up David Atcherley-Symes and Luca de Ambrosis Ortigara; We’ve already gotten sign-ups for next year’s matches Neil Chapman and winners Pieter Van Voorst Vader and Sebastiano Jaksetich. and we’ve even secured some new sponsors.”  c

Roppenheim the Style Outlets, Neinver and MAB Development’s 292,800-sf center that opened in 2012 in France, was named Best Factory Outlet Centre by Mapic in November. 22 I nte rnationa l Ou tle t Journal Winter 2014