HGI outlet fund raises EUR 140m to expand in Europe

Henderson Global Investors (HGI) announced on Thursday that its EUR 1.4 bn European Outlet Mall Fund (EOMF) is seeking to expand its portfolio through investments in prime designer outlet centres in Continental Europe.

To do this, the fund has built up EUR 140 mln in additional firepower, equal to 10% of the fund's size, following signed commitments from two institutional investors and the sale of EOMF's Designer Outlet Centre in Troyes to Resolution Property in April 2010 for EUR 85.5 mln.

HGI said that there is further interest in the fund's remaining investment window.

David Williams, fund manager for EOMF said: 'We are extremely interested in investment opportunities in Germany, but we are also very interested in the French and Spanish outlet market. The German outlet sector has a lot of potential which we have already experienced through the success of our designer outlet mall in Berlin, which will open its second phase this September and has outperformed since the opening of its first phase in 2009.'

Turnover across EOMF's portfolio is significantly up on the same period last year. A lease structure based on turnover has enabled valuations across the portfolio to remain stable during the economic downturn.

Established to acquire properties that are dominant in their catchment and offer significant asset management opportunities, the fund directly owns eight leading European outlet malls located in France, Italy, Austria, the Netherlands, Belgium and Germany as well as three UK outlets indirectly. All properties are managed by the McArthurGlen Group - Europe's leading developer, owner and manager of designer outlet villages. Henderson and McArthurGlen are co-investors.