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."