Aareal Bank has refinanced the Designer Outlet Neumünster, the largest outlet mall in northern Germany, with a €214 mln loan.
The mall is owned by McArthurGlen and Nuveen Real Estate, and the loan meets Aareal Bank’s green lending criteria.
Aareal Bank acted as sole underwriting for this transaction which marks the beginning of a new relationship with McArthurGlen, a major European outlet operator with nearly 600,000 m2 of retail space across 24 centres in eight countries. The other partner, real estate manager Nuveen Real Estate, oversees €29 bn in retail assets alone.
Since its 2012 opening, the Designer Outlet Neumünster, located conveniently near Hamburg and the Danish border, has been a popular shopping destination. Its 29,000 m2 feature a village-style layout and houses approximately 130 stores offering a mix of luxury brands (Versace, Armani) and premium labels (Polo Ralph Lauren, Boss, Tommy Hilfiger).
Severin Schoettmer, managing director Special Property Finance at Aareal Bank, commented: ‘We are thrilled to provide financing for this prime retail asset of McArthurGlen and Nuveen Real Estate, two leaders in the retail property sector. Both companies demonstrate that, with the right concepts, brick-and-mortar retail schemes can be operated successfully and retain customers in the long term.’
Mark Epstein, deputy chairman at McArthurGlen Group, added: ‘The proven concept of the Designer Outlet Neumünster reflects our commitment to delivering a high-quality value proposition for consumers while providing world-leading brands with an important channel to offer their products. We are delighted to be working with Aareal Bank to continue to make an active contribution to the transformation of the property industry.’
Aareal Bank AG managed all aspects of the financing, serving as arranger, facility agent, and security agent. Legal counsel was provided by Gleiss Lutz, and Cushman Wakefield conducted the property valuation.
