Ares Management has made another European retail play with the acquisition of two French retail outlet centers for around €200 million.
The designer outlet centers are located in the French regional cities of Troyes and Roubaix. The centers will continue to be managed by property management company McArthurGlen, which has made a minority investment in the centers as part of this transaction.
The outlet centers together comprise a total of approximately 506,000 square feet and feature strong retail tenants, including Polo Ralph Lauren, Nike, and Hugo Boss, among many others.
Ares has invested in European outlet centres in the past, and continues to be an active investor in European retail real estate, having announced the acquisition of a portfolio of three UK retail parks in December from Land Securities.
The Los Angeles-based firm also established a €500 million joint venture for Iberian retail with pan-European real estate investment management company Redevco in September.
“Both of these retail outlet centres have dominant locations and have served as popular shopping destinations in the northeastern regions of France,” said John Ruane, partner in the Ares Real Estate Group. “We have identified significant potential to create value through active management, including improving the tenant mix and upgrading the buildings to enhance the shopping experience.”
The firm acquired the properties from London-based private equity real estate firm Resolution Property.