All Outlet Eyes Turn to Asia - Value Retail News

All Outlet Eyes 

Turn to Asia 

Paju Premium Outlets, South Korea 

Plus: 

Updates on Asian development 

Paju Premium Outlets opens 

ICSC launches Outlets Asia 

LUXEMBURG 

Designer Outlet Luxembourg opens 

Germany: Europe’s jewel 

And much, much more…

ALBERTA FERRETTI 

ARMANI 

BALLANTYNE 

BLUMARINE 

BOTTEGA VENETA 

BRIONI 

BROOKS BROTHERS 

BULGARI 

BURBERRY 

COSTUME NATIONAL 

DAMIANI 

DOLCE & GABBANA 

ERMENEGILDO ZEGNA 

ESCADA 

ETRO 

FENDI 

GUCCI 

HUGO BOSS 

JIL SANDER 

JOHN RICHMOND 

KENZO 

LA PERLA 

MARNI 

MISSONI 

MONCLER 

MULBERRY 

PAUL SMITH 

POLO RALPH LAUREN 

PRADA 

ROBERTO CAVALLI 

SERGIO ROSSI 

TAG HEUER 

TRUSSARDI 

VALENTINO 

VERSACE 

joy 

is reaching even 

more consumers 

Our 19 designer outlet villages across Europe offer the world’s 

leading brands to over 75 million customers a year, representing 

the most profitable way to sell excess stock in a stylish environment. 

And our programme of expansion means we have room for more. 

To find out how we can help your business improve cashflow, 

contact Adrian Nelson on +44 (0)20 7535 2300 or 

a.nelson@mcarthurglen.com www.mcarthurglengroup.com

PAGE 4 PAGE 14 

PAGE 26 

STAFF 

DAVID B. HENRy 

ICSC ChaIrman 

International Outlet Journal is a publication for the 

non-U.S. factory outlet industry. Copyright © 2011 

CONTENTS 

Vol. 7 No. 3 Summer 2011 

MICHAEL P. KERCHEVAL 

ICSC PreSIdent & CeO 

RUDOLPH E. MILIAN, SCSM, SCMD 

ICSC SenIOr VP 

ICSC EUROPE 

London, +44 20 7976 3100 

icsc.europe@icsc.org 

ICSC/IOJ 

2519 n. mcmullen Booth rd. 

Suite 510-356 

Clearwater, FL 33761 

+1 727 781 7557 

LINDA HUMPHERS 

editor in Chief/director ext. 3 

lhumphers@icsc.org 

RANDy GDOVIN 

art director ext. 4 

rgdovin@icsc.org 

KAREN KNOBELOCH 

advertising Prod. mgr. ext. 2 

kknobeloch@icsc.org 

SALLy STEPHENSON 

Senior advertising executive 

+1 847 835 1617 

Fax: +1 847 835 5196 

sstephenson@icsc.org 

In s I d e 

4 Opportunities and challenges in Asia 

6 Updates on Asian development 

9 Research: China’s planned projects 

10 ICSC launches Outlets Asia conference 

12 Paju Premium Outlets opens 

13 Simon speaks about Japan 

14 Germany: Europe’s jewel 

16 Research: Germany’s outlet offer 

18 Germany’s second outlet wave 

22 Designer Outlet Luxembourg opens 

23 Around the Globe: News about Fashion House 

Moscow, Melilli Outlet, Outlet Premium Brasilia, 

Optimum Outlet Adana, Nailloux Fashion Village 

26 Trade Group Report from Italy 

Advertiser Index 

european Outlet Conference ................ 21 

Fashion house ..................................... BC 

Fashion Outlets of Chicago ................... 19 

Florentia Village Jingjin Outlets ............. 7 

henderson Global Investors ............... IBC 

ICSC Outlets asia .................................. 11 

mcarthurGlen designer Outlets ..........IFC 

neinver ................................................. 17 

Value retail ............................................ 5 

SummEr 2011 InternatIOnal Outlet JOurnal 3

ChiNa 

Outlet development in China: 

Opportunities and challenges 

By LINDA HUMPHERS 

Editor in Chief 

In recent months the global outlet 

industry has been intensely focused on 

Asia in general and China in particular. 

Although purpose-built outlet 

development started in China nearly a 

decade ago, the country is still the new 

kid on the block for the Western-style 

concept that retailers are most comfortable 

tenanting. But for its sheer size 

and potential, China is quite properly in 

the spotlight. In fact, Chinese shoppers 

and their well-documented passion for 

luxury brands have become sought-after 

and targeted by outlet-center operators 

in Japan, Europe and the U.S. 

The opening of Yansha Youyi Shopping 

City in 2002 was quickly followed 

by a spate of imitators that gathered a 

hodgepodge of brands under one roof, 

generally outside a main city, usually 

near an expressway interchange. Some 

say more than 200 such value centers 

are masquerading as outlet projects, 

whereas Yiqun Wang and Xingo Jian, 

in their report for ICSC on the rise of 

FOCs in Mainland China, count around 

30 solid outlet centers tenanted by 

mostly authentic outlet merchandise. 

With estimates on China’s middle 

class rising to nearly 280 million 

households in the next 15 years, various 

analysts predict that between 100 and 

300 cities qualify as outlet markets in 

China. And everyone knows that Chinese 

shoppers love the outlet centers in 

Japan, Europe and the U.S. 

But there are some basic challenges 

to developing outlet centers in China. 

For instance, the Chinese government’s 

control over land is often mentioned as 

the reason that outlet sites there often 

aren’t ideal. Another area of concern is 

the lack of high standards for maintaining 

the outlet proposition of price, 

quality and selection. 

Outlet veteran Gary Skoien says the 

lack of brands doing business in China 

is a major challenge. On the other 

4 InternatIOnal Outlet JOurnal SummEr 2011 

hand, he says, “I really 

believe the demand for 

brands is so great that 

it will not be difficult 

for retailers to thrive, 

especially if the centers 

employ Western 

standards of service, 

quality and design 

while incorporating 

an understanding of 

the customer and local 

traditions.” Skoien 

is CEO of Horizon 

Group Properties, 

which is working with 

RichlyField in China. 

Ivano Poma would 

agree with Skoien. 

The managing director 

of RDM Asia, which is 

about to open Florentia 

Village, its first 

outlet center in China, 

says the establishment 

of consistent management 

standards is 

the industry’s most 

pressing concern there, 

but strong consumer 

demand will help the industry flourish. 

“All the major fashion brands are aggressively 

– even frantically – planning 

their outlet offer so that they don’t miss 

the opportunities in China,” Poma said. 

“We believe that this trend will inevitably 

create the base for our industry to 

prosper. Furthermore, as opposed to 

the typical path in the West, we think 

that demand in China will be supported 

by increasingly sophisticated supplychain 

management at the local level.” 

For Poma, the key to developing and 

tenanting an outlet project in China is 

experience. “Our Western logic gives 

us a competitive advantage for defining 

strategies and approaches,” he said, referring 

to RDM’s partnership with McArthurGlen 

in developing designer outlet 

centers in Italy during the last few years. 

Chris Milliken, commercial director 

Citygate Outlets 

of Freeport, points out that “In China 

there are only a handful of properly 

run outlet centers with a relevant mix 

of international brands. Most are poor 

imitations with little or no connection 

to the brand or master franchisee.” 

Additionally, the availability of stock 

can be an issue for international brands, 

Milliken says, noting that import duties 

in China are 24 percent of the full 

retail price of a product. For companies 

that manufacture within China, 

there are also regulations and tariffs for 

the movement of goods around the 

country, all of which means that prices 

– even outlet prices – are high in China. 

For Milliken, operating standards 

are vitally important and the reason 

Freeport has joined Outlets China as 

an advisor on the developer’s planned 

portfolio of Palette Outlet projects. 

The first is set to open in Foshan in 

(continued on page 6)

© Value Retail PLC 2010 

THE 

Chic Outlet Shopping® 

VILLAGES 

Discover Europe’s leading luxury outlet shopping experience, 

created and operated by Value Retail www.ChicOutletShopping.com 

Bicester Village, London • La Vallée Village, Paris • Fidenza Village, Milan 

Las Rozas Village, Madrid • La Roca Village, Barcelona • Ingolstadt Village, Munich 

Maasmechelen Village, Brussels / Düsseldorf • Wertheim Village, Frankfurt • Kildare Village, Dublin 

Alexander McQueen, Anya Hindmarch, Armani, Bally, Burberry, Calvin Klein, 

Carolina Herrera, Celine, DKNY, Diane von Furstenberg, Diesel, Dior, Dolce & Gabbana, Dunhill, 

Ermenegildo Zegna, Façonnable, Givenchy, Gucci, Hugo Boss, Jimmy Choo, La Perla, Loewe, Loro Piana, 

Marni, Matthew Williamson, Max Mara, Mulberry, Paul Smith, Polo Ralph Lauren, Salvatore Ferragamo, 

Smythson, TAG Heuer, Tod’s, Valentino, Versace and many more 

RUN BY RETAILERS AND SERVING RETAILERS 

19 BERKELEY STREET, LONDON W1J 8ED, ENGLAND +44 (0)1869 323 757 WWW.VALUERETAIL.COM

ChiNa 

(continued from page 4) 

October. From his viewpoint, things are moving in 

the right direction, though slowly. 

“The culture of the landlord investing in firstclass 

maintenance, customer care and marketing is 

generally taking time to catch on in China,” Milliken 

says. “But in response to growing customer expectations 

and brand pressure, standards are improving 

with each new opening. 

“Brands can afford to be highly selective even 

though the availability of quality outlet centers is 

limited. Despite the huge pipeline of outlet centers, 

most will have no realistic chance of leasing and operating 

at a high level, and those projects will have to 

rely on the vast range of domestic brands that play 

the supporting role in these large centers.” c 

Changsha Globe races 

to open by yearend 

CHANGSHA GLOBE Outlet, developed 

by Globe Outlets-Richlyfield China, operated 

and managed by Horizon, is set to 

open in Autumn 2011 in Changsha, the 

capital city of Hunan Province in central 

China. The project is 30 minutes from 

downtown and 40 minutes from the 

airport. With more than 400 shops in an 

86,000-m2 site, Changsha Globe Outlet 

will draw from the 16 million people living 

within an hour’s drive, as well as the 

145 million tourists who come to Hunan 

year round. 

The site is surrounded by high-end 

communities, including Press Resort & 

Hotel (the only ultra five-star hotel in 

Hunan Province), Long Hu Golf Course 

(which is lighted at night) and Noble 

Hills, the first luxury residential community 

in Changsha. More than 80 percent 

of the brands at the Mediterranean-style 

Globe Outlet will be international. 

Wuhan Riverfront 

Outlets set to open 

in fall 2012 

THE WUHAN OUTLET Company, 

whose principals include a 16-year veteran 

of outlet-center development in Asia, has 

secured a 200,000-m2 site in Wuhan. 

The site for Wuhan Riverfront Outlets 

is approximately 40 minutes northwest 

of the city’s main commercial districts. 

The 40,000-m2 outlet project, which will 

be the first true outlet center in the region, 

will include more than 175 international 

and domestic fashion brands and 


food tenants. The 20,000-m2 phase 1 is 

scheduled to open in fall 2012. 

Wuhan, the capital city of Hubei 

Province in central China, has more 

than 9.1 million people. 

Wuhan Outlet Company is an international 

consortium based in Hong Kong 

that includes the Wuhan Union Real 

Estate Co., WB Outlet Developments 

and The Outlet! Company. 

The Outlet! Company, based in Hong 

Kong, is led by Daniel Kelly, who spent 

16 years with U.S.-based outlet developer 

Chelsea Property Group, now a division 

of Simon Property Group. During 

his tenure, Kelly was actively involved 

in the development of seven Premium 

Outlets centers in Japan, one in South 

Korea and one in Mexico. 

“The retail community is eagerly 

awaiting an outlet project in China that 

is designed, developed and managed by 

global standards and by professionals with 

proven experience in the region,” Kelly 

told IOJ. “Following the ground breaking 

in Wuhan, we will be announcing more 

details regarding a second outlet project in 

China to be located in Nanjing.” 

FoxTown Shanghai 

Shanghai Fashion Outlets 

turns space 

over to tenants 

SHANGHAI TEXTILE and Urban Retail’s 

Shanghai Fashion Outlet in Shanghai 

was scheduled at IOJ press time to 

make delivery on phase 1 to tenants in 

May and to open in September. According 

to Ron Simkin, who is working 

with Urban on tenanting, “This is a very 

interesting project. It has over 600,000 

sf of outlet space, a 200,000-sf building 

on the boardwalk for nice restaurants, 

and a 100,000-sf fashion component 

with a runway, first-class dressing rooms 

and a VIP building. 

“There is also an office building to accommodate 

the garment industry,” says 

Simkin, who is president of U.S. based 

consultancy The Simkin Group. Phase 2 

includes two hotels on which construction 

will start this year, he says. 

Tenants include Armani, Burberry, 

Coach and Prada, along with Nike, 

Adidas and Lacoste. The entertainment 

(continued on page 8) 

Shanghai Fashion Outlets

ChiNa 


complex houses an array of international 

cuisine and social clubs designed 

to extend the shoppers’ stay. 

Urban Retail provides development, 

leasing and management services for the 

project. 

In Yilan, Taiwan, Urban’s Luna Plaza 

project is also open. The mixed-use, 

multilevel complex has Carrefour on 

the lower level and three levels of outlet 

tenants. The fourth floor has restaurants, 

and on top of all that is the Silk 

Place Yilan hotel. 

JV plans Mega Mills 

in Quingpu, Shanghai 

SHANGHAI WELEAD Investment Co., 

Ltd. and The Outlet! Company have 

entered into a partnership to jointly develop 

and manage China’s first Mega Mills outlet 

shopping center. 

Mega Mills occupies a 420,000-m 2 site 

directly off the Zhao Xiang Exit on the 

G50 Highway in Qingpu District, Shanghai, 

30 minutes from city center, directly 

across from the most successful outlet 

project in China, Bailan’s Shanghi QingPu 

Outlets. 

Phase I of the project will include 

60,000-m 2 of luxury outlets and 4,000 

parking spaces. Grand opening of phase 

1 is planned for May 2012, following a 

soft opening in January 2012. 

RDM is awarded 

Shanghai outlet site 

AN APPARENT three-way battle in 

China for an outlet site between the 

Pudong International Airport and 

Shanghai Disney Resort, scheduled to 

open in spring 2016, is over. RDM says 

it has signed an agreement with the 

Shanghai Pudong government to be a 

strategic partner in the development of 

Florentia Village, the company’s second 

outlet center in China. 

The new project is scheduled to 

open in 2013 with 53,950 m2 of GLA. 

Florentia Village in Pudong will feature 

traditional Italian architecture, as well 

as a contemporary Italian events facility 

inspired by the Italian Pavilion in the 

Shanghai Expo. This pavilion will be used 

for cultural and artistic events to promote 

understanding and appreciation between 

the Chinese and Italian people. 


Phase 2 of the 

project includes 

80,000 m2 of residential 

space, 88,000 

m 2 of office space, 

and a 280-room 

Hyatt Place hotel. 

The project will 

also include 9,000 

m2 of restaurants, 

cafes and food court 

vendors, an eightscreen 

movie theater, 

entertainment facilities and an extensive 

schedule of concerts and special events. 

The Outlet! Company is currently 

developing Outlet! projects in Taiwan 

through its partnership with the Gloria 

Hotel Group, and in Wuhan and Nanjing, 

China through its partnership with 

WB Outlet Developments. 

Welead is a member of the Pearl 

River Investment Group, a China-based 

private company involved in real estate 

development, construction services, 

telecommunications, energy and education. 

Edward Chu is chairman of 

Shanghai Welead Investment Co. 

China’s Vegas to get 

its first outlet center? 

THE MACAU DAILy Times reported in 

early April that Macau’s first outlet proj- 

Ivano Poma, RDM 

Asia Ltd. managing 

director, says “the 

center will have more 

lifestyle facilities to 

make it as attractive 

a destination as the 

Disney resort.” 

According to the 

Shanghai Daily newspaper, 

the government 

had invited U.S.-based 

Simon Property 

Group, Japan-based 

Mitsui and Italian fashion/retail 

giant RDM 

to draft a blueprint for 

the outlet mall. 

RDM is owned by Fingen, the 

Italian real estate, retail and finance 

company also known for its partnership 

with McArthurGlen in developing 

outlet centers in Italy. 

Mega Mills 

ect will open at the Grand Waldo resort 

this summer. Hong Kong-listed Get 

Nice Holdings is investing € 18 million 

to redevelop the hotel complex, which 

will include about 200,000 sf of outlet 

space. The project will target mid-level 

consumers and families, rather than the 

gambling mecca’s high-rollers. Products 

offered will include a large number of 

electronics from Japan. 

Sometimes called China’s Las Vegas, 

Macau, along with Hong Kong, is one 

of the two special administrative regions 

of the People’s Republic of China. The 

territory’s economy is heavily dependent 

on gambling and tourism but also 

includes manufacturing. It lies on the 

western side of the Pearl River Delta, 

bordering Guangdong province to the 

north and facing the South China Sea to 

the east and south. c 

Florentia Village 

RDM, which intends to develop five 

outlet centers in China in five years, will 

open its first, Florentia Village, in June, 

a 42,000-m2 center in Wuqing, near Beijing. 

Italian brands opening in the center 

include Prada, Fendi and Bulgari. c

34 Planned Outlet Projects in China By City/region 

Project name GLA Opening City/Region Developer 

the Palette Beijing 100,000 sf 2012 Beijing Outlets China-Freeport 

Globe Outlet - Changchun 810,000 sf pipeline Changchun/Jilin Globe Outlet 

real estate Ltd. 

Changsha You’a Outlets 80,000 m2 pipeline Changsha You’a 

Globe Outlet-Changsha 86,000 sf 2011 (October) Changsha/hunan Globe Outlets-richly 

Field-horizon Group 

Globe Outlet - Chongqing 810,000 sf pipeline Chongqing Globe Outlet 


dalian Windfall 300,000 sf 2012 dalian/Liaoning Windfall 

the Palette Fushan 100,000 sf 2011 (October) Fushan Outlets China-Freeport 

Globe Outlet - Fuzhou 810,000 sf pipeline Fuzhou/Fujian Globe Outlet 


hangzhou Xiasha Outlets 75,000 m2 2011 haining/haining Bailian 

hangzhou Scitech n/a 2011 hangzhou PCd Stores 

Globe Outlet - harbin 810,000 sf pipeline harbin/heilongjiang Globe Outlet 


Globe Outlet - hefei 810,000 sf pipeline hefei/anhui Globe Outlet 


the Palette huzhou 100,000 sf 2012 huzhou Outlets China- 

Freeport 

Jinan Pacific Outlets n/a pipeline Jinan taiwan Pacific Group 

Globe Outlet - Kunming 810,000 sf pipeline Kunming/Yunnan Globe Outlet 


Grand Waldo Outlets 200,000 sf 2012 macao Get nice holdings 

Wealth Outlets 13,000 m2 pipeline nanchang hongkelong 

nantong Outlets 30,000 m2 pipeline nantong Xintonghai 

ningbo Outlets 2011 ningbo/ningbo Shanshan, mitsui, 

Project ntd n/a Itochu 

Florentia Village Pudong 53,950 m2 2013 Pudong, near rdm 

disney resort 

Globe Outlet - Qingdao 810,000 sf pipeline Qingdao/Shandong Globe Outlet 


Globe Outlet - 810,000 sf pipeline Qinhuangdao/hebei Globe Outlet 

Qinhuangdao real estate Ltd. 

Shanghai Fashion 700,000 sf 2011 (June) Shanghai Shangtex holding Co Ltd.- 

Center Yangpu Urban asia 

mega mills 60,000 m2 may 2012 Shanghai (Qingpu) Shanghai Welead 

Investment Co/the 

Outlet! Company 

Shenyang Stage n/a 2011 Shenyang Fullco/tianfang 

mitsubishi Shenyang n/a pipeline Shenyang mitsubishi estate 

Outlet China Shenyang 100,000 sf pipeline Shenyang Outlets China 

Shenyang Scitech n/a 2011 Shenyang PCd Stores 

tianjin Stage n/a 2011 tianjin Fullco/tianfang 

Globe Outlet - tianjin 810,000 sf pipeline tianjin Globe Outlet real estate Ltd. 

Florentia Village Wuqing 42,000 m2 2011 (June) tianjin/Beijing rdm 

PlaNNEd CENTErS 

Wuhan Pacific Outlets 30,000 m2 pipeline Wuhan taiwan Pacific Group 

Globe Outlet - Wuhan 810,000 sf pipeline Wuhan/hubei Globe Outlet real estate Ltd. 

Xiamen Scitech n/a 2011 Xiamen PCd Stores 

Source: Yiqun Wang, Gap Inc. Corporate Real Estate, ICSC, and VRN Global Outlet Project Directory 


aSia 

Simon lends the voice of experience in Asia 

Simon Property Group’s U.S. 

outlet centers have long been 

destinations for international 

travelers. Since the 1985 opening 

of Woodbury Common Premium 

Outlets, Simon has been introducing 

visitors from all over the world to the 

benefits of upscale outlet shopping, 

the 71-center portfolio’s consistent 

concept. The thrill and benefit of 

saving money on designer brands 

has universal appeal, yet quality tenants 

and upscale environments are 

a big part of why outlet shopping is 

a primary activity for travelers and 

shoppers who understand outlet 

authenticity. 

More than 10 years ago Simon decided 

to expand into Japan, a country 

whose shoppers were already 

traveling en masse to the developer’s 

Premium Outlets in the U.S. 

The company now has eight outlet 

centers in Japan, two in Korea and 

one opening in November in Malaysia. 

Each center is an extension of 

Simon’s global outlet portfolio and 

is cross-marketed whenever pos- 

ICSC launches Outlets Asia 

ICSC is launching the first conference 

in Asia exclusively for the 

outlet sector. Outlets Asia will be 

July 28 and 29 at the Shangri-La Hotel 

Suzhou. The focus of the 1 ½-day 

conference will be on the prospective 

Asian markets for outlet centers and will 

include discussions by industry experts 

from the U.S. and Europe, as well as 

from Asia, on brands, Asian preferences, 

economic trends, investors and 

planning policies. 

The emphasis for this conference will 

be on China, which is booming with 

some three dozen planned outlet projects. 

The conference will be followed by 

a tour of Suzhou He Shun Outlets and 

Changshu Outlets. 

Suzhou is in the heart of China’s 

prosperous Jiangzhe region that surrounds 

Shanghai. 

“Since China is host to more new 

outlet projects than anywhere else in 

Asia, it seemed only logical to launch 


sible. Having centers in Asia has not 

diminished shoppers’ desire to come 

to the U.S. to shop in the original 

Premium Outlets, says John Klein, 

president of Premium Outlets, the 

outlet division of Simon Property 

Group. 

IOJ recently conducted an email 

interview with Klein on outlet development 

in Asia. 

IOJ: What are some fundamental 

differences and similarities in developing 

outlet centers in Asia and 

the U.S.? 

Klein: Universally, shoppers enjoy 

finding savings on quality brands. 

However, each country has its own 

culture that requires appropriate 

tailoring. Asia is a large region made 

up of very different countries that 

need to be addressed as such. 

IOJ: How about the differences and 

similarities you’ve noted in Asia 

– Japan vs. Korea vs. Malaysia vs. 

China? 

Klein: Japan’s outlet market is fairly 

mature, while the Korean market is 

still emerging as it enjoys increased 

the series in Suzhou in the booming 

Jiangzhe region which now has the biggest 

concentration of outlets in China,” 

explained Tan Guan Heng, director of 

ICSC Asia Pacific. 

Conference topics will include the 

state of the global outlet industry; 

consumer shopping patterns; outlets’ 

role in fashion; outlet development 

fundamentals; mapping Chinese outlets; 

assembling the right tenant mix; marketing 

outlet centers. 

“There will be learning opportunities 

for insiders and outsiders alike,” 

Tan said. “For local investors and retail 

executives, the series provides an ongoing 

opportunity to learn about best 

practices, planning, operations, regulations 

and other fundamentals essential 

for success. 

“For international investors who have 

already climbed the outlet curve in their 

home markets, Outlets Asia series is a 

rare opportunity to get the real story 

international awareness. Malaysia/ 

Singapore have very sophisticated 

retail developments, but Johor 

Premium Outlets will be the region’s 

first true outlet center. We have 

welcomed many shoppers from this 

region so there is great excitement 

and anticipation for the opening. 

China has a number of projects that 

have developed over the last several 

years, but the definitions, standards, 

and authenticity of outlets overall 

are lacking in clarity. There is also 

a much larger role of government in 

China. 

IOJ: The biggest challenge? 

Klein: Finding a strong local partner 

has been key to success in navigating 

each market’s issues. 

IOJ: What is your No. 1 key for success 

in Asia? 

Klein: There is no one single key; it 

requires being completely engaged 

in delivering the finest brands, in 

high quality developments and 

locations, with a unified marketing 

strategy, and a cohesive operations 

team. c 

behind the headline numbers,” he said. 

Tan pointed out, for example, that 

both China’s rich and not so rich support 

China’s €7.5 billion luxury market. 

“There are hundreds of millions aspirational 

Chinese already buying a piece of 

the middle class,” Tan said, adding that 

Westerners familiar with outlet retailing 

will also get a chance to see some of the 

innovative ways Asians have adapted the 

concept. 

But Tan reckons the biggest concern 

for international players coming to Suzhou 

will be site selection. “We expect 

attendees will leave Suzhou for home 

with some answers,” he said, “or at 

the very least, they’ll leave with a lot to 

think about on the flight home.” 

With the support of the local government, 

Outlets Asia’s launch event is also 

endorsed by Suzhou Hi-Tech Industrial 

Development Zone Administrative 

Committee and the China Famous Business 

Development Association. c

aSia 

Paju Premium Outlets 

opens in South Korea 

Paju Premium Outlets, the 

second outlet center in South 

Korea developed by Simon 

Property Group and Shinsegae, 

opened 99 percent leased on March 

17 to floodgate crowds. In the two 

weeks following the opening, more 

than 600,000 visitors combed the 

328,000-sf center’s 160 stores – including 

21 restaurants – for deals on 

brands ranging from Marc Jacobs to 

Callaway Golf. 

The international brands at the 

center include luxury labels such as 

Armani, Coach, Elie Tahari, Jill Stuart, 

Lanvin Collection, Sonia Rykiel and 

Vivienne Westwood. Major local 

brands include Mine, Obzee and Time. 

The developers’ first outlet center 

in South Korea, Yeoju Premium 

Outlets, southeast of Seoul, opened 

in 2007 and introduced upscale 

outlet shopping to the country. The 

100-percent leased Yeoju Premium 

Outlets continues to perform exceedingly 

well, generating sales of US$875 

psf. Korean outlet shoppers noted on 

a blog that Paju might have a more 

diverse merchandising plan than 

Yeoju, mixing luxury tenants such as 

Armani, Coach and MaxMara with 

Gap, Banana Republic and Levi’s. 

Retailers including Jil Sander, Tory 

Burch and Calvin Klein Collection 

chose Paju as the center to open their 

first outlet stores in Korea. 

Paju Premium Outlets is an outdoor 

village designed with Art Deco 

styling and eco-friendly elements, 

such as solar water heaters and clerestory 

windows in the parking garage. 

Strategically located in Paju, 

Gyeonggi Province, the center is approximately 

50 minutes northwest of 

downtown Seoul. 

Simon’s Pipeline 

Simon and Shinsegae are also developing 

a third Korean outlet center 

in Busan. 

In Malaysia, Simon and Genting 

Group will open the 175,000-sf Johor 


Paju Premium Outlets 

Premium Outlets later this year, scheduled 

for November. The center’s 44-acre site 

is at the intersection of the North-South 

Expressway and the Second Link Expressway, 

about an hour’s drive from the 

city center of Singapore and about three 

hours from Kuala Lumpur. 

In Japan, the 52,000-sf phase 3 of 

Tosu Premium Outlets will open July 

14. The center, a Simon and Mitsubishi 

JV that will grow to 292,000 sf and 150 

tenants with the expansion, opened in 

March 2004. Among the 28 new stores 

joining Tosu Premium Outlets– Kyushu’s 

largest outlet center – are A|X 

Armani Exchange, Burberry, Michael 

Kors, TAG Heuer, Banana Republic, 

Malo, Iena, Earth Music & Ecology and 

Godiva. c

Paju Premium 

Outlets tenants: 

Aigle 

Aigner 

Armani Exchange 

Ashworth 

Banana Republic 

Bean Pole 

Bogner 

Boss 

Brooks Brothers 

Buckaroo Co. 

Callaway Golf 

Calvin Klein Collection 

CK Jeans 

Club Monaco 

Columbia Sportswear 

Daks 

Descente 

Diesel 

DKNY 

Egoist 

Eider 

Elie Tahari 

Escada 

Fubu 

G-Cut 

Galaxy 

GAP 

Guess 

Hazzys 

Isabel Marant 

Issey Miyake 

Jack Wolfskin 

Jil Sander 

Jill Stuart 

John Varvatos 

Joseph 

Juicy Couture 

K2 

Kenzo 

Kuho 

Lacoste 

Lansmere 

Lanvin Collection 

Le Coq Golf 

Le Coq Sportif 

LeBeige 

Levi`s 

Marc Jacobs 

MaxMara 

Michael Kors 

Mine 

Mogg 

Montbell 

Mountain Hardwear 

Munsingwear 

New Balance 

Nike 

Nike Golf 

Nina Ricci 

Obzee 

Oilily 

Pal Zileri 

Ping Golf 

Plastic Island 

Pleats Please 

Polo Ralph Lauren 

Puma 

Raum 

Reebok 

S. T. Dupont 

Sandro Series 

Shinsegae Outlet Store 

SJSJ 

Solid Homme 

Sonia Rykiel 

Stefanel 

Stone Island 

System 

Taylor Made 

Theory 

Theory-Man 

Thursday Island 

Time 

Tommy Hilfiger 

Tory Burch 

Vanessabruno 

Vivienne Westwood 

VOV 

Zadig & Voltaire 

Simon addresses impact of earthquake, tsunami 

SINCE THE DEVASTATING earthquake and tsunami struck 

Japan on March 11, Simon Property Group has been quiet 

about the disaster’s effect on the eight Japanese Premium 

Outlets that Simon owns with Mitsubishi Estates. On April 29, 

during an earnings conference call with analysts, Simon chairman 

and CEO David Simon addressed the situation, explaining 

that Sendai Premium Outlets, the smallest of the properties, 

was damaged by the earthquake and was still closed. 

“Fortunately, repairs are currently under way, and we expect 

a reopening in mid-June of this year,” he said, adding that 

three other properties – Gotemba, Sano and Ami – were allowed 

to operate only eight hours a day for about six weeks, 

but had since gone back to their regular 10-hour schedules. 

“It is too early to gauge the short-term impact of the 

earthquake, tsunami and damaged nuclear facilities to our 

business,” Simon said. “Sales of the centers near Tokyo have 

been below year-ago levels since the quake. As things settle 

down in Japan, we expect these highly productive, highquality 

Premium Outlets to revert back to historical trends. 

However, we anticipate that softness will continue for the 

remainder of 2011.” c 


GErmaNY 

Germany: elusive jewel 

in the outlet crown 

Attempting to develop 

an outlet center in 

Germany is somewhat 

like the quest for the 

holy grail. 

By Stephanie Kramer 

Contributing Writer 

In the next two years the number of 

outlet centers in Germany is expected 

to double. With five or six new centers 

opening their doors by 2012, and the 

potential for more after that, some are 

predicting a bright future in what is still 

largely uncharted outlet territory. But is 

this late-bloomer really the land of opportunity 

for outlet centers? 

According to Anneliese Hovinga, 

senior account manager at Stable International, 

which is developing two outlet 

centers in Germany, “This country is 

actually full of outlets – they just aren’t 

often grouped together. The concept of 

an ‘outlet village’ isn’t that difficult to 

translate to the consumer as long as the 

brands are there.” 

Henrik Madsen, managing director of 

Northern Europe for McArthurGlen, 

Designer Outlets Wolfsburg 


Wertheim Village 

which will open its second 

outlet center in Germany 

in 2012, says the country is 

“significantly underdeveloped, 

especially compared with the 

UK or Italy. There is a very 

low outlet presence because 

of restrictive planning legislation.” 

The potential for outlet 

retailing in Germany is immense, 

both in opportunity 

and spending power. 

The most developed European 

markets, the UK and Italy, have 

10 m 2 and 8.3 m2 of outlet 

space per 1,000 inhabitants. 

In Germany that figure is less 

than 1 m 2 . 

Spending power 

“Germans have grown 

wealthier in the last 15 years,” 

says John Quinn, director of 

Germany for Value Retail, 

which targets high-end shoppers 

in affluent regions and 

opened Wertheim Village in 

2003 followed by Ingolstadt in 

2005. “There has been an in- 

Zweibrucken The Style Outlets 

crease in their desire for luxury products. 

The German consumer is very brand 

aware, and also more brands are coming 

into Germany.” 

Retail consultant Sven Buchsteiner of 

Frankfurt-based CBRE says, “Last year 

there were €407 billion in retail turnover 

in Germany. The level of turnover in 

Germany has remained constant for 

the last 10 years, unlike in other European 

countries. This further increases 

the attractiveness of the German retail 

market. Furthermore, the German consumer 

likes quality products and a good 

bargain at the same time. 

“People want to buy those top brands

at home, so more and more retailers are 

interested in presenting their brands in 

Germany. Outlets offer consumers a 

chance to experience those brands.” 

“Germany has tremendous spending 

power,” says Stephan Schaefer, 

managing director of Outlet Centres 

International (OCI), which developed 

Germany’s largest outlet center in 

Zweibrücken and subsequently sold 

it to Neinver in 2009. “Germany is 

the largest country in Europe and has 

the largest economy, so of course it is 

looked at by all retailers and developers 

with interest.” 

OCI will open phase 2 of its Designer 

Outlets Wolfsburg in 2012, adding 

6,000 m2 to the existing 10,000 m2. 

Neinver’s 30,000-m 2 Zweibrücken 

The Style Outlets is the largest outlet 

center in Germany with 125 stores and 

2,358 parking places. The center, which 

had 2.6 million visits in 2010, has been 

a robust tool in helping the developer 

assess Germany’s potential with its strategic 

partner, MAB Development. 

“Germany is an interesting market,” 

says Sebastian Sommer, country 

manager for Neinver Germany, “because 

it is not yet fully developed as an 

outlet destination even though German 

consumers have tremendous spending 

power. 

“Germany is different from other 

European countries mainly in its 

substantial and intense licensing and 

approval processes,” he says. “It takes 

a lot of time to discuss and explain 

legislative and licensing procedures, 

present concepts on retail compatibility 

to the powerful retail associations 

and municipalities, as well as clarify the 

regional integration of a center in terms 

of sustainability, environmental topics 

or tourism. 

“These procedures had a hand in the 

fact that the German market isn’t yet 

saturated,” Sommer says, adding that 

decision-makers at local and regional 

levels are now open to discussions on 

outlet centers. “They clearly see the 

advantages that outlet centers offer to 

a region. So, we see a changing, more 

positive attitude toward the outlet 

industry in Germany, but we still know 

that patience is required.” 

Ups an downs 

The pluses and minuses of Germany 

seem to be two sides of the same coin. 

Designer Outlet Berlin 

According to OCI’s Schaefer, 

“The difficulty of opening a 

center in Germany is also what 

makes having one so attractive. 

Once you get it, it has a value in 

itself because there are so few.” 

Each federal German state 

has its own regulations, and 

current locations tend to be 

opportunity-driven. Even for 

an experienced outlet developer, 

spending 5-10 years in the 

planning – and in the courts – 

is not unusual. 

“We thought it was bad 

in Holland. It’s even worse 

in Germany,” says Stable’s 

Hovinga. “We have encountered 

challenges on all levels: 

national, local, regional – but 

mainly local and regional. So, 

we brought on board a good 

legal advisor who had already 

worked with developers who 

had been successful in Germany. 

That was crucial.” 

The situation is relaxing slightly as 

more outlet centers open. 

“The level of political debate has 

come down a notch,” Buchsteiner 

says. “Before we had a type of culture 

clash in Germany. Now politicians see 

that outlet centers are not the end of 

the world.” 

On the contrary, many local politicians 

have discovered that designer 

outlet centers can attract more visitors 

to the area and that the revenue they 

generate can help fill local coffers. 

Wertheim Village 

Yet developers remain cautious. “On 

the surface it is more relaxed,” says 

Dutch developer Robert Van den Heuvel 

of One Outlet Services, which plans 

to open its first outlet center in Germany 

next year. “Before, you couldn’t even 

mention outlet centers in Germany. 

Now you can talk about them, but it is 

still sensitive. In Germany, retail is very 

old and very strong.” 

For every success story, though, 

there are countless failures. “People 

(continued on page 16) 


GErmaNY 


are optimistic about Germany because 

we (Value Retail) got it done,” Quinn 

says, adding that since the mid-1990s 

the developer has considered Germany 

its second market after the UK. “We 

are coming to a point where German 

politicians think any outlet center will 

be successful. It won’t. You need an 

experienced operator and a quality 

development.” 

Buchsteiner says Germany will not 

end up with 40 outlet centers like the 

UK or Italy, but “it could perhaps have 

25 centers, including the existing small 

ones.” 

Important German cities such as Munich 

or Freiburg may present additional 

opportunities, and another key area of 


interest is Germany’s 

largest, westernmost 

state, North Rhine- 

Westphalia, the capital 

of which is Düsseldorf. 

With a population of 

18 million inhabitants, it 

is Germany’s strongest 

state economically. The 

region was also the first 

to knock down the tough 

restrictions that impede 

outlet development. 

“This will be the next 

place for developers to go,” Buchsteiner 

says. “It was a landmark decision by the 

courts that may even set a precedent for 

other states.” 

Ingolstadt Village 

Stay tuned for the third wave of outlets 

in Germany. c 

Stephanie Kramer is a writer and translator 

based in Berlin. 

Existing outlet centers in Germany 

CENTER CITy DEVELOPER OPENING TyPE SF M2 

OutletCity Metzingen Stuttgart holy aG 1975 village 484,375 45,047 

(metzingen) 

Zweibruecken Zweibruecken neInVerS.a. 2001 village 301,400 28,030 

The Style Outlets 

Wertheim Village Frankfurt Value retail PLC 2003 village 222,000 20,646 

(Wertheim) 

Ingolstadt Village munich/nuremberg Value retail PLC 2005 village 226,000 21,018 

(Ingolstadt) 

Seemaxx Factory radolfzell hesta Immobilien 2006 mall 48,440 4,505 

Outlet Center 

Designer Outlets Wolfsburg Outlet Centres 2007 village 215,500 20,042 

Wolfsburg International 

Designer Outlet Berlin mcarthurGlen 2009 village 103,100 9,588 

Berlin (Wustermark) 

Planned outlet centers in Germany 

CENTER CITy DEVELOPER OPENING TyPE SF M2 

Factory Outlet Soltau mutschler 2012 village 107,600 10,007 

Centre Soltau development 

Group 

Brehna Outlet Park Brehna One Outlet 2012 mall 156,077 14,515 

Services 

Designer Outlet hamburg mcarthurGlen 2012 village 215,000 19,995 

Neumunster (neumunster) 

Wiedemar Leipzig Stable 2012 mall 167,800 15,605 

Fashion Outlet (Wiedemar) International 

development 

Montabaur Frankfurt Stable 2012 village 135,000 12,555 

Fashion Outlet (montabaur) International 

development 

Source: 2010-2011 Global Outlet Project Directory

We look after the brands as if they were our own. 

All the brands have their own interest but just one joins them all: selling. 

That’s why 700 of the world’s best brands put their trust in NEINVER. Because we are 

the second largest outlet operator in Europe, managing more than 243,000 sq.m. GLA and 

over 1,000 stores. Because we manage 11 outlet centers in Spain, Italy, Poland, Portugal 

and Germany and 5 more about to be opened. 

And above all, because we make a commitment to our retailers to support them with all 

our experience. We recognize that the success of a brand is also ours. 

This is what has made us leaders. 

OUTLETS WITH 

THEIR OWN STYLE

PlaNNEd iN GErmaNY 

Germany’s second wave 

of outlet development 

The first wave of German 

outlet-center openings 

occurred in the late 1990s, 

and the so-called second 

wave is now occurring 

with at least five new 

centers scheduled to open 

in 2012 alone. A capsule 

look at each of those 

planned projects follows. 

Designer Outlet Neumünster 

McArthurGlen, which has managed 

Designer Outlet Berlin since 2009, plans 

to open its second German outlet center 

in the fall of 2012. After completion of 

phases 1 and 2, the 26,000-m2 Designer 

Outlet Neumünster will have more than 

130 shops and 2,500 parking spaces, 

making it the largest outlet center in 

Germany. More than 1,000 jobs will be 

created in total. 

The center’s site is 40 minutes from 

Hamburg, directly on the A7 motorway, 

which connects Germany with Denmark. 

An estimated 5 million tourists visit 

Hamburg each year, Germany’s secondlargest 

city and its wealthiest. Another 

5 million to 6 million tourists, mainly 

German, visit the state of Schleswig- 

Holstein. 

To appeal to German and international 

visitors, the developer is planning a designer, 

premium, high-end brand mix and 

an eclectic variety of food offers. MCG’s 

other attractions are its architectural 

concepts and emphasis on top customer 

service. 

Designer Outlet Soltau 

Mutschler Development Group’s 

planned Designer Outlet Soltau is in the 


idyllic Luneburger Heide in Northern 

Germany surrounded by 7 million 

people within a 60 minute drive. The 

10,000-m 2 center, scheduled to open 

in late summer 2012, is on the A7 motorway, 

near Hamburg, Hanover, and 

Bremen. Another 5 million overnight 

guests come to the region each year 

and 1.5 million annual visitors come to 

Heide Park, Germany’s second largest 

Designer Outlet Neumünster 

Designer Outlet Soltau 

theme park. 

“There is a strong overlap between 

the visitors to Heide Park and the type 

of customer we want to attract,” Sylvie 

Mutschler says. 

A co-marketing scheme has been 

developed to increase the number of 

visitors to both sites. Shoppers will 

find discounts of up to 70 percent on 

(continued on page 20)

iS 

The 

fashion outlets of chicago 

ROSEMONT 

USA 

ineviTable 

happening... 

are you runway ready? 

305.932.6202 usa 

info@awetalisman.com 

www.fashionoutletsofchicago.com

PlaNNEd iN GErmaNY 


quality brands as well as restaurants, 

cafes, a child care area, and a tourist information 

center. All of this is housed 

in an appealing design that combines 

the classic, modern architecture of 

nearby cities with individual, boutiquelike 

shops fashioned after the houses 

typically seen in the local countryside. 

About 1,200 parking spaces will be 

built and a shuttle service will connect 

the center with downtown Soltau and 

Heide Park. 

In addition to 300-400 jobs created by 

Wiedemar Fashion Outlet Brehna Outlet Park 

Site fight brews near leipzig 

In Leipzig, the second largest city in the former East 

Germany, two projects have sprung up less than 15 

miles apart. “Perhaps the region can sustain more 

than one outlet center,” Buchsteiner says, but with two 

centers racing head-to-head to be the first, “the air is 

getting thin. It’s going to be first come-first served.” 

Wiedemar Fashion Outlet 

Stable International’s second planned project in 

Germany, Wiedemar Fashion Outlet, is already more 

than 50 percent leased and construction has already 

begun. The opening of the 16,000-m2 center with its 

70 tenants and 2,000 parking spaces is scheduled for 

spring 2012. 

The center, directly on the A9 motorway within easy 

reach of more than 6 million residents, is enclosed to 

accommodate the climate. 

“Leipzig is extremely dynamic,” says Anneliese 

Hovinga of Stable International. “It is different from 

what you typically see in East Germany. The population 

is highly educated and they have interesting spending 

power.” 


the center itself, Mutschler is confident 

that Designer Outlet Soltau will benefit 

the region as a whole. 

“From the beginning, we have tried 

to create as many win-win strategies as 

possible in the region,” she says, “so 

that rather than going home, people will 

say ‘it’s worth it to spend a couple of 

days.’” 

Montabaur Fashion Outlet 

Montabaur Fashion Outlet, developed 

by Dutch-based Stable International, 

is scheduled to open in 2012. 

Montabaur’s site is directly on the A3, 

one of Germany’s most important 

North-South motorways, and is also 

accessible by a high-speed train line 

connecting Cologne and Frankfurt. 

Montabaur is near the scenic Rhine 

River, where 7 million people live 

within a 90-minute drive. 

The 13,500-m2 center will offer 60 

brands and will create about 500 jobs 

directly and indirectly. Stable generally 

devotes about 10 percent of the space 

to restaurants and cafes to increase 

dwell times. c 

Brehna Outlet Park 

In the nearby town of Brehna, another Dutch developer, 

One Outlet Services, is also hoping to be the first 

to open its doors in Leipzig. Brehna Outlet Park is a 

joint venture with ITG of Düsseldorf to convert an existing 

shopping center into an outlet center. The indoor 

center with a glass roof will offer 23,000 m2 of retail 

space for 120 brands. About 1,850 parking spaces will 

be available. The project is expected to create about 

500 jobs. 

A soft opening is planned for the spring of 2012, and 

demolition of the existing site has begun. The PEP 

supermarket will remain, but the outlet center will be 

a separate structure with its own access road from the 

A9 motorway. 

“The area around Leipzig has a lower disposable 

income than other parts of Germany,” says Robert Van 

den Heuvel of One Outlet Services, “but for outlets, 

inexpensive merchandise is core.” 

Brehna Outlet will offer a mixture of German and 

international brands. Van den Heuvel, a former Nike 

executive, says, “The brands offered at Brehna Outlet 

Park will match the average income. We’re aiming for 

the middle and up – but the middle is big.” c

“ Excellent, 

best conference 

yet - great to 

concentrate on 

operations!” 

Anna Jones 

Head of Retail 

Development, 

GVA Outlets 

ICSC European Partners 

ICSC European Outlet 

Conference 2011 

12-13 October 2011 

Milan, Italy 

Outlet Retailing: 

Reaping the Rewards 

• Exclusive Outlet Industry Research 

•Outlet Chains Reveal Expansion Plans 

•Hot, Chic, Today - Top Outlet Marketers Talk 

•Evolving World of New Outlet Development 

•Europe’s First Outlet-Only Deal Making Event 

Also featuring: 

ICSC Outlet Centre Tour to 

Franciacorta Outlet Village 

12 October 2011 

Retailers and 

tenants go 

FREE! 

TO REGISTER VISIT WWW.ICSC.ORG/2011EOS OR CALL +44 20 7976 3102

EurOPE: OPENiNG 

designer Outlet 

Luxembourg opens 

Henderson Global Investors 

and McArthurGlen officially 

opened the first phase of the 

recently renovated and newly named 

McArthurGlen Designer Outlet 

Luxembourg on April 14. 

The 177,000-sf center, on the 

199 Route d’Arlon in Messancy, 

Belgium, is five minutes from 

both France and Luxembourg and 

40 minutes from Germany, with 

nearly 6 million consumers within 

a 90-minute drive. 

McArthurGlen Luxembourg has 

been totally transformed to improve 

the overall look of the center, 

from landscaping and paving, 

to the facades of the buildings, the 

street furniture and the awnings, 

all in keeping with the local architectural 

style. 

The new brand mix includes Betty 

Barclay, Best Mountain, Desigual, JB 

Martin, Guess, Hunkemöller, Salomon, 

SIA, Sunglass Time and Lunch Break. 

McGregor and Gaastra will open in 

May, and Petit Bateaux towards the end 

of the year. 

The center, which opened in 2003, 

was acquired in 2008 from Invest 


McArthurGlen and Henderson 

completely refurbished the 177,000-sf 

Designer Outlet Luxembourg, which the JV 

acquired in 2008. 

Realty for €12 million by Henderson’s 

European Outlet Mall Fund, in which 

Henderson and McArthurGlen are coinvestors. 

A second phase set to open in 2012 

will add 20 more tenants, bringing the 

center to 65 brands and 16,500 m 2 . c 

A second phase of the center planned to open in 2012 will add 20 more 

tenants to Designer Outlet Luxembourg. 

Designer Outlets 

Luxembourg tenants 

Betty Barclay 

Billabong 

Carven 

Champion 

Desigual 

Dockers 

Energie 

Guess 

Guy Degrenne 

Home & Cook 

Hunkemöller 

Jacques Heim 

JB Martin 

Kipling 

Le Phare de la Baleine 

Lee 

Levi’s 

Lunch Break 

Miss Sixty 

Morgan 

Möve 

Nike Factory Store 

Pepe Jeans 

Reebok 

Replay 

Salamander 

Salomon 

Tom Tailor 

Tommy Hilfiger 

Wrangler

Fashion House Moscow 

moves forward with 

leasing, construction 

Leasing and construction are ahead 

of schedule for what could be the first 

outlet center in Russia. Fashion House 

Group recently said that Russian brand 

distributor No One Group will open 

four stores in Liebrecht & Wood’s 

Fashion House Outlet Centre Moscow, 

scheduled to open in 2012. The units, 

which will be branded as Fabi, Baldini, 

Vicini and Braciallini, will total 485 m2; 

the lease agreement is for 10 years. 

“Our Italian partners have been 

actively developing their full-price retail 

chains in Russia and were aware of the 

necessity to develop an outlet offer,” 

says Aram Manukian, one of the founders 

of No One Group. “They have 

already been successfully operating both 

full-price and outlet stores in Europe 

for some time, so it was vital that we 

deal with a group like Fashion House, 

which has a successful and proven track 

record in this sector and a thorough 

understanding of the Russian market.” 

Fashion House Group, which is part of 

the Liebrecht & Wood Group, has been 

developing and operating outlet centers in 

the CEE for several years. The portfolio 

currently includes the management of 

three outlet centers in Poland and one 

each in Denmark, Switzerland and Romania, 

plus planned developments in Roma- 

Fashion House Moscow 

nia, Serbia, Slovenia and Ukraine as well as 

a second Russian site in St. Petersburg. 

One of the planned CEE centers, 

Fashion House Outlet Centre Belgrade, 

scheduled to open later this year as the 

first outlet center in Serbia, is 40 percent 

leased with tenants that include Adidas, 

Bata, Miss Sixty, Replay and Timberland. 

The 324,000-sf project will open in two 

phases with 55 units in each phase. 

Back in Moscow, Fashion House has 

started construction on the 15,833m2 

phase 1 of Fashion House Outlet 

Centre Moscow, which is more than 65 

percent leased. Tenants signed up for 

the first phase include CK Jeans, Carlo 

arOuNd ThE GlObE 

Pazolini, Henderson, Levis, Mexx, Miss 

Sixty, Murphy & Nye, Pinko and Puma. 

Fashion House is handling international 

leasing and Magazin Magazinov, a division 

of CB Richard Ellis, is in charge of 

domestic letting on the project. 

Fashion House Outlet Centre Moscow, 

12 km from Moscow, on Leningradskoe 

Shosse, near the Sheremetyevo International 

airport, will also have a 12,808-m2 

second phase. Upon completion, the €97 

million center will have 192 outlet units, 

food court and cafes, 1,865 parking spaces 

and a children’s play area. 

GVA Sawyer is the Russian developer 

of the project. c 

Promos plans opening 

for Melilli this summer 

The 9,600-m 

Melilli Construction (continued on page 24) 

2 (GLA) phase 1 of Melilli Outlet, a Fashion 

District brand, will open this summer with 104 stores just 10 

km from Siracusa, one of the most economically dynamic 

areas of Sicily. The sweeping project will be part of the 

Belvedere business district, which already has Auchan Shopping 

Center, Paradise Acquapark, Decathlon, Media World, a 

hotel, a sports center, an aquatic park and an office complex. 

Marketing activities are in place, driven by Max Mara 

Group’s plans to open its first Diffusione Tessile store 

in Sicily, expected to be the largest in Italy. Promos S.r.l., 

headed by Carlo Maffioli, is working alongside the project’s 

developer, Tecnall, for the marketing and management of 

the Sicilian outlet project. 

Tecnall is the owner of the center and the exclusive 

licensee of the Fashion District trademark in Sicily. Tecnall’s 

use of the Fashion District trademark marks the first time 

such a licensing agreement has been put into place in Italy, 


arOuNd ThE GlObE 

Adana Optimum Outlet Center 

Optimum Outlet opens in adana, turkey 

The 602,800-sf Adana (Turkey) 

Optimum Outlet Center opened 

99 percent leased and more than 

70 percent occupied on April 8. The 

center, co-developed by Renaissance 

and Amstar Global Partners, features 

170 international and domestic retailers, 

a 10-screen cinema, a bowling 

alley and 35 restaurants. 

Adana is 30 miles inland from 

the Mediterranean Sea and is the 

fifth largest city in Turkey with 

1.5 million people. Optimum 

Outlet’s site is near the city center 

in a dense urban neighborhood. 

Optimum is one of four Americanstyle 

shopping malls in Adana: M1 

and Carrefour at the west end and 

Galleria and Optimum on the banks 

of the Seyhan River. The demand 

for retail is apparently intense. 

“Despite constructing and leasing 

during the financial crisis, the 

project opened fully leased with a 

high-quality mix of international and 


and is similar to the Fashion House 

brand used by outlet centers in Poland, 

Romania and Russia. 

Strategically located near the splendid 

beaches of the Ionian Sea and 

the extraordinary archeological sites 

of Siracusa, Melilli Outlet will draw 

shoppers from the 3.5 million tourist 


domestic tenants,” said Jason Lucas, 

president of Amstar Global Partners. 

“We expected a strong turnout for 

the grand opening, but the 280,000 

visitors during the first weekend far 

exceeded our expectations and was 

a testament to the strength of our 

tenants and the pent-up demand for 

quality retail product in the market.” 

Adana Optimum Outlet Center 

tenants include: 

n Benetton 

n Diesel 

n Dockers 

n Levi’s/Dockers 

n Mango 

n Marks & Spencer 

n Nike 

n Quiksilver 

n Samsung 

n Sarar 

n Sony 

n Timberland 

n Tommy Hilfiger 

arrivals a year and more than 1 million 

households within a 60-minute drive. 

The center can be easily reached from 

the Belvedere-Siracusa Nord exit of the 

Superstrada 114, which is the four-lane 

continuation of the Autostrada A18 

from Catania. 

Melilli Outlet’s modern design has an 

elliptical shape and multiple levels with 

Amstar and Renaissance formed 

a joint venture to develop projects 

throughout Turkey and Russia. The 

partnership has also developed traditional 

shopping centers in Istanbul 

and in Novosibirsk, Russia, and has 

a strong pipeline of future projects. 

Amstar is a real estate investment 

manager with more than $1.5 billion 

of assets throughout the U.S., 

Europe and Latin America. 

Renaissance has completed hundreds 

of turnkey projects since its 

founding in 1996, including Optimum 

Goztepe Outlet Center (493,000 sf) in 

Istanbul. With a portfolio valued at 

more than $2 billion, Renaissance 

plans to develop Optimum Outlets 

in Izmir and in the Silivri suburb 

of Istanbul. In 2010, Renaissance 

became the second-largest contractor 

in Russia and Turkey and the 

75th largest international contractor 

in the world according to ENR 

Magazine. c 

parking on each. Open terraces overlook 

a large central plaza protected by a 

moveable roof that ensures a comfortable 

shopping experience in all seasons. 

A 4,300-m2 (GLA) phase 2 with 25 

stores is also planned. 

The total investment in the project, 

financed by UniCredit, will amount to 

€75 million. c

Second Brazilian 

outlet center 

is planned 

GENERAL SHOPPING Brasil 

S/A, a publicly-held company 

headquartered in Sao Paulo, 

Brazil, has filed plans to develop 

Outlet Premium Brasilia, a 

greenfield outlet project. The 

new project will follow the 

same format as the developer’s 

first outlet center, the 8,858-m2 

Outlet Premium Sao Paulo in 

Itupeva, which opened in June 

2009. Tenants in that center include 

Adidas, A/X Outlet Store, Calvin Klein 

Jeans, Diesel, Ecko Unltd., Giorgio 

Armani General Store, Home & Cook, 

Lacoste, Levi’s, New Balance, Nike, Ree- 

Sao Paulo 

High expectations held for Nailloux, opening in autumn 

NOW THAT GROUND has broken and 

construction is well under way, Nailloux 

Fashion Village has set its opening date 

at November 23, just in time for holiday 

shopping. 

The 331,000-sf center, set to become 

the first outlet project in the South of 

France, is 20 minutes from the Toulouse 

bypass at A61 and A66 in Chemin du 

Gril, Le Moulin, 30 km from Toulouse. 

The Midi-Pyrenees region draws more 

than 18 million visitors a year, including 

11 million to more than two dozen ski 

resorts. Toulouse has a population of 

more than 1.2 million, and 2.4 million 

live within a 90-minute drive of the site. 

Nailloux Fashion Village, now 75 

percent leased, will turn space over to 

tenants in August. 

Franck Verschelle, managing director 

of Advantail, which is developing 

and marketing Nailloux Fashion Village, 

expects 1.7 million visitors the first year, 

with the average yearly count quickly 

rising to 3 million, thanks to the tourist 

flow and location. 

“November, December and January 

are without any doubt the strongest period 

of the year,” Verschelle said. “We 

wish to start in full mode and benefit 

from the strong dynamics of this festive 

time of year when consumers are 

spending.” 

Footfall will be aided, he said, by the 

many partnerships the developer has 

formed with tourist operators. “Not less 

bok, Rip Curl, Tommy Hilfiger, Trousseau, 

Van’s and Zegna Outlet Store. 

The 16,480-m2 Outlet Premium 

Brasilia’s site is on the BR-060 expressway 

at km 21 in Alexania, Goias state, 

Nailloux Fashion Village 

than 700 coaches are already planned for 

2012,” he said. 

The center was designed to appeal to 

those who come to the South of France, 

he said. “We took care to create an 

authentic Lauragais village with arcades, a 

central plaza and restaurants on terraces,” 

he said, adding that the center will also 

have all the amenities needed to make 

shopping easy and all the tenants needed 

to make shopping exciting. 

Cyril Zaprilla, director of the investment 

company Corio, which owns 75 

which is a municipality that integrates the 

micro-region surrounding Brasilia and is 

part of the important Goiania-Anapolis- 

Brasilia axis. The center’s plans call for 80 

stores and 2,000 parking spots. c 

percent of the project, says the designer 

tenants signed up for Nailloux 

Fashion Village will be revealed in the 

autumn, closer to opening. But Zaprilla 

is so enthralled with how the brands 

are lining up that he said, “we will 

be able to count on average annual a 

turnover of € 4,200 per m 2 … with an 

average basket of 

€ 162 per vehicle.” 

To accommodate all those big-spending 

shoppers, Nailloux will have 1,764 

parking spaces. c 


iTaliaN OuTlET 

Italian outlet sector 

learning and growing 

By Filippo Maffioli, 

President of italian Factory Outlet 

Italy’s outlet landscape was bustling 

in 2010. 

Two new centers expanded the 

industry’s reach inside the country last 

year, reaching the Campania Region in 

February with McArthurGlen Group’s 

La Reggia Designer Outlet and Sicily in 

November with Premium Retail’s Sicilian 

Fashion Village. 

Two existing facilities were also 

enlarged: the Neinver project at Vicolungo 

added some twenty new stores 

and officially became part of The Style 

Outlets, while the Veneto Designer 

Outlet in Noventa di Piave added about 

50 boutiques. 

The good news is that 2011 is 

expected to be equally dynamic. New 

expansions and projects are already 

under way in the south of the peninsula 

at Eboli and Melilli. In addition, there 

have been encouraging developments 

on the tenancy front, with the arrival of 

top Italian brands – first and foremost, 

Armani, along with such established 

international brands as Spain’s Desigual 

and a new U.S. entry, the Gap. 

Shoppers continue to respond 

enthusiastically and retail reporters 

never miss an opportunity to emphasize 

the new shopping and consumer 

trends at the heart of all this success. 

It’s no coincidence that all the main 

outlet operators in the region have 

reported steadily increasing traffic and 

turnover in the last two years, often in 

double digits. 

In 2011, the Observatory, established 

in collaboration with SDA Bocconi, began 

monitoring the Italian market. The 

results should prove to be an extremely 

useful source for all the outlet operators 

– as well as the media in the region 

– at both the national and international 

level. The Observatory will publish an 

analysis of its first results this autumn. 

In conclusion, I would like to share 


La Reggia Designer Outlet 

comments on consumer trends by two 

commission representatives: 

the IntrOductIOn of the FOC 

channel has really revolutionized Italian 

consumer habits, rapidly becoming 

a social and cultural phenomenon. In 

a period characterized by widespread 

economic crisis and a sharp drop in 

consumption, the outlets are able to intercept 

a large number of clients who are 

unwilling to forego high quality products, 

especially apparel. In this sales channel, 

they are able to find the most prestigious 

brands at discounted prices. The heavy 

demand enables many players to coexist 

and justifies the expectations of further 

growth, especially in Southern Italy. 

The response received from the 

clientele in Campania, and even outside 

the region, in this first year of business 

of La Reggia Designer Outlet, has only 

strengthened our belief in the format. 

We inaugurated the mall on February 

18, 2010 with an investment of over 

€120 million, creating 1,000 jobs, and 

in just one year, the outlet at Marcianise 

can boast numbers that ensure the 

initiative a position of leadership on the 

Italian retail scene. 

roberto meneghesso, County 

manager for Italy, mcarthurGlen 

In the laSt decade we have seen 

new ways in which goods are transferred 

to the consumer. In the past the 

success of shopping citadels was based 

on the price/quality ratio and on ensuring 

that the experience is enjoyable. We 

at Fashion Outlets believe that the time 

has come to add a new feature to the 

game in which the consumer can also 

try out new ideas and share in the goods 

once available to just a few. 

With this view, the Sicilia Fashion 

Village was inaugurated on November 

25, 2010, with 120 stores, including 

food and services featuring typical 

Sicilian products and local crafts. This 

kind of merchandising in the center 

gives a strong link to the local region 

and helps to develop tourism for the 

entire community. 

matteo Percassi, General manager, 

Premium retail

250,000 sq m 

The Fund's 250,000 sq m portfolio comprises 12 highly successful 

pan-European designer outlet centres in Italy, Germany, France, 

Austria, The Netherlands, Belgium and the UK. 

ITALY; SERRAVALLE, BARBERINO, CASTEL ROMANO | AUSTRIA; PARNDORF | THE NETHERLANDS; ROERMOND 

GERMANY; BERLIN, HAMBURG | BELGIUM; DOC LUXEMBOURG | FRANCE; ROUBAIX | UK; CHESHIRE OAKS, SWINDON, BRIDGEND www.henderson.com/property 

European Outlet Mall Fund 

The newly renovated McArthurGlen Designer Outlet Luxembourg officially opened on 14 April 2011 with an 

exciting new brand mix and total GLA of 16,500 sq m. We are also developing a new 26,000 sq m outlet centre 

in Neumünster, Hamburg with our partners McArthurGlen and are always looking for new opportunities in core 

Western European markets. 

David Williams 

Fund Manager 


Tel: +44 (0)20 7818 6423 

david.williams@henderson.com 

Jamie Acheson 

Asset Manager 


Tel: +44 (0)20 7818 3394 

jamie.acheson@henderson.com 

FOR PROFESSIONAL ADVISERS ONLY 

This document is intended solely for the use of professionals, defined as Eligible Counterparties or Professional Clients, and is not for general public distribution. The value of an investment and the income from it can fall as well as rise and you may not 

get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. If you invest through a third party provider you are advised to consult 

them directly as charges, performance and terms and conditions may differ materially. Due to the specialist nature of property investment, in certain circumstances there may be constraints on the redemption or switching of units/shares in the fund(s). 

The funds invest in a specialist sector that may be less liquid and produce more volatile performance than an investment in other investment sectors. The value of capital and income will fluctuate as property values and rental income rise and fall. The 

valuation of property is generally a matter of valuer’s opinion rather than fact. The amount raised when a property is sold may be less than the valuation. Nothing in this document is intended to or should be construed as advice. This document is not a 

recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. Any investment application will be made solely on the basis of the information contained in the Prospectus (including 

all relevant covering documents), which will contain investment restrictions. This document is intended as a summary only and potential investors must read the Prospectus before investing. Issued in the UK by Henderson Global Investors. Henderson 

Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment 

Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), (each incorporated and registered in England and Wales with registered office 

at 201 Bishopsgate, London EC2M 3AE), Gartmore Investment Limited (reg. no. 1508030), Gartmore Fund Managers Limited (reg. no. 1137353), (each incorporated and registered in England and Wales with registered office 8 Fenchurch Place, 

London EC3M 4PB) are authorised and regulated by the Financial Services Authority to provide investment products and services. Telephone calls may be recorded and monitored.

GROUP 

New Outlet Centres in Moscow and St. Petersburg 

FASHION HOUSE Group is the leading developer of Outlet Centres in CEE and is an 

expert in emerging markets. The FASHION HOUSE Outlet Centres portfolio currently 

includes the management of three successful Outlet Centres in Poland and a fourth in 

Bucharest, Romania. 

FASHION HOUSE Outlet Centres in Poland (now owned by Polonia Property Fund II) have 

won the EuropaProperty ’CEE Factory Outlet of the Year’ award for the last three years 

running, with two ranked within the Top Ten Best Performing Outlet Centres in Europe 

2009. 

The winning FASHION HOUSE formula continues to develop, offering a proven and 

trusted access into new territories for the Outlet sector. Two Russian projects , one in 

Moscow and the second in St. Petersburg, are due to open in 2012. 

FASHION HOUSE Outlet Centre, Moscow 

FASHION HOUSE Moscow is a 45 minute drive from the centre of Moscow, 

on the main highway connecting Moscow with St.Petersburg, immediately 

adjacent to Sheremetyevo Airport. The Outlet Centre will be a fully enclosed 

scheme, built in keeping with traditional Russian architecture and totalling 

some 28,765 m² GLA with 192 Outlet stores, dedicated Foodcourt and over 

1,865 car parking spaces. 

leasingmoscow@fashionhouse.com 

FASHION HOUSE Outlet Centre, St. Petersburg 

FASHION HOUSE St. Petersburg will be located in the south-west part of the 

city totalling 37,000 m 2 GLA with 172 store units, dedicated Foodcourt and 

1,200 car parking spaces. The external architecture of this Outlet Centre 

has been inspired by typical buildings from the Low Countries, with which 

St. Petersburg has had trading and cultural links for centuries. 

leasingstpetersburg@fashionhouse.com 

www.fashionhouse.com/new-projects 

FASHION HOUSE 

opens two Outlet Centres in Russia 

St. Petersburg 

Russia 

Gdańsk Moscow 

Warsaw 

Sosnowiec 

Bucharest 

Russia 

Kiev 

Odessa 

Rostov

All Outlet Eyes Turn to Asia - Value Retail News

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?