- A US$500m JV to capture growth in luxury sales-
SINGAPORE and BEIJING, May 29, 2012 /PRNewswire-Asia/ -- The joint venture brings together a dynamic group of specialist real estate investors including the Italian Fingen Group of the Fratini Family, the Luxemburg based China Outlet Mall controlled by Jacopo Mazzei, Gaw Capital Partners from Hong Kong, the Sino-US Waitex as well as a major US institution. The objective of Silk Road is to invest into the outlet mall sector targeting acquisition and development of outlet malls across China. The partners not only bring a significant equity commitment (US$200m+) but also a complementary set of skills that is unique in the market. The combined team brings an unprecedented degree of international outlet expertise, luxury retail network, development capability and local market knowledge which promises to set a new standard for the China luxury outlet sector in terms of design, brand representation and consumer experience.
Henderson Global Investors is acting as the investment advisor for the joint venture alongside RDM Asia (the real estate development company of the Fingen Group in Asia) who is the operating and development partner. Together they bring an unmatched experience in this niche sector in China, leveraging their European experience and success. Waitex and Gaw Capital Partners will work together with RDM Asia providing local knowledge and development experience in China.
The joint venture has completed its first acquisition - Florentia Village - Jingjin Designer Outlet - a 41,000sqm designer outlet centre near Beijing. Designed and developed by RDM Asia, with Fingen and Waitex as founding investors, Florentia Village opened in June 2011 as China's first authentic Italian outlet village. It houses 165 stores with the strongest mix of luxury and premium Italian, International and Chinese brands available in the market offering guaranteed discounts on goods year round for shoppers. Florentia Village is the only outlet in China today hosting Prada, as well as other European fashion giants in its line up. The JV aims to replicate the successful model in other major cities in China with plans in place to develop a portfolio of at least four additional schemes. New sites have been identified in key gateway cities with construction scheduled to start in 2012 with the cooperation of local municipalities that recognise the extraordinary value added and quality brought by the schemes developed by RDM Asia.
Through the acquisition of Florentia Village and the identified pipeline of other sites, the joint venture intends to capitalise on the outsized growth in spending in the Chinese luxury goods sector.
Commenting on the appointment as Investment Adviser, Chris Reilly, Director of Henderson Property Asia, said: "We are extremely confident about the prospects for the luxury retail sector in China. Chinese consumers are very brand conscious and expect a sophisticated shopping experience with high quality service and premier brands. RDM's Designer Outlet Centres provide this combination at significantly discounted prices which we believe is a formula for success. To be appointed as investment adviser for this exciting joint venture is a great endorsement of our expertise and capability within the outlet mall sector."
Jacopo Mazzei, CEO of RDM Asia explained "The Florentia Village project has established a newbenchmark for Designer Outlets in China. The brand mix achieved in the centre is one of the mostprestigious of the world and unheard of in China. This is mainly due to our strong relationship with all top brands in Europe, US and China and our understanding of their needs; we are able to create a high quality environment with strongly attractive and efficient design combined with first class operations in the centre. Such high brand quality and nice environment with the addition of the diversity offered has successfully attracted thousands of visitors every week, since day one, confirming that this new concept for China is working extremely well. Our main target audience is the middle class who are showing, on top of a very strong brand consciousness, an increasing capacity of spending power. Certainly retail is, and will be, one of the "hottest" sectors in China and Designer Outlets will represent a niche with extremely high growth potential."
"Alice Breheny, Head of Research at Henderson, added: "The retail sales growth story in China iscompelling with international and domestic retailers expected to continue their aggressive expansion plans. We believe the rental growth prospects for Chinese luxury outlets will be correspondingly impressive as retailers compete for the best assets. Luxury brands have some of the most ambitious expansion plans for the Chinese market but will be more astute than mass-market retailers with regards to location. Specialist outlet malls that bring together likeminded retailers, and provide the quality of shopping experience that discerning Chinese consumers increasingly demand, should perform very well."
Notes to Editors
About Henderson Property
Henderson Global Investors is an independent FTSE 250 company with US$106.5 billion in assets under management worldwide. Henderson have been present in the Asia-Pacific region for over 15 years, headquartered in Singapore and represented in Hong Kong, Sydney, New Delhi, Tokyo and Beijing. Henderson has a full spectrum of property assets under management in the region including direct, indirect and property securities. Retail property is recognised as a core strength for Henderson, and represents over 50% of the direct property assets under management.
Henderson has significant interests in the outlet mall sector and currently manages the established, market leading European Outlet Mall Fund and UK Outlet Mall Fund in partnership with McArthurGlen. On behalf of its clients Henderson currently holds 12 outlet malls across 7 countries and has a portfolio value of euro1.7bn.
About Fingen Group
The Fingen Group was founded in 1979 and focuses its business in three areas: fashion, retail and real estate development. The real estate development business includes a portfolio of mainly retail and residential/hospitality assets valued at circa US$1.8 billion. It currently manages more than 20 developments with a total surface area of more than 600,000 sq m. In fashion and retail, Fingen Group has held licences and developed some major global brands including Calvin Klein, Guess and Jean Paul Gaultier. They have strong relationships with many major Italian brands that underpin their outlet business.
RDM Fingen began in Italy, where they have a strong record of successful real estate development projects. The Designer Outlets are strategically located throughout Italy, in locations carefully selected to maximize revenues. Fingen RDM developed, amongst others, Serravalle -- the largest outlet mall in Europe. Fingen RDM is the developer for the next generation of designer outlet malls in China. As the first of its kind, Fingen RDM developed a designer outlet mall close to Beijing, the Florentia Village with relationships with brands including Prada, Ferragamo, Armani, Burberry, Fendi, Tods, Bulgari, Zegna, Celine and Dunhill.
Fingen Group has been present in China since 1986 and has today built an experienced outlet operation there supported by the Italian Management team. In China, the Head of Operations has over 15 years experience in outlets. The Centre Manager of the Florentia Village, Beijing has managed outlets for the last seven years including two in China.
http://www.fingen.it/en/business/real-estate/
About the partnership
Henderson Global Investors (HGI) and Fingen RDM (the real estate service company of Fingen Group) started working together in 2004 and have since formed a close and successful relationship. HGI invests in some of Europe's largest luxury designer outlet mall schemes through its European Outlet Mall Fund and the UK Outlet Mall Fund in partnership with McArthurGlen. The chart below details the centres held in Henderson Fund ownership:
Fingen Group has developed 5 Luxury Italian Outlet Centres including Serravalle Scrivia (Alessandria), Castel Romano (Roma), Barberino di Mugello (Florence), Noventa di Piave (Venice) and the Marcianise (Caserta). The Fingen Group business model combines real estate development, fashion and retail. The company is present in Europe and Asia with over 2,000 staff.
About Florentia Village
Florentia Village -- Jingjin Designer Outlets is China's first authentic Italian outlet village and promises Chinese consumers the ultimate shopping experience with 165 of the most famous Italian luxury brands and international and Chinese fashion premium brands offering irresistible discount prices all year around. Opened since June 2011, Florentia Village delivers an uncompromising shopping experience for Chinese consumers with beautiful Italian style architecture, authentic Italian and international cuisine, and entertaining public events -- bringing the fashion, culture and spirit of Florence Italy without ever leaving Beijing.
With a total site area of 60,000 square meters, and a gross leasing area of 41,000 square meters, Florentia Village boasts collections from finest Italian luxury and premium fashion brands around the world. Consumers can find the diverse variety of products at outlet value laid across four distinctive shopping zones: luxury, international premium, sports and outdoor, and leisure.
Florentia Village -- Jingjin Designer Outlets is characterized by the authentic Italian style with fabulous architecture, including a canal running through the entire village with gondolas, elegant arena and bridges, beautiful fountains, romantic squares and porticoes, not to mention a variety of gourmet from all over the world and outdoor cafés. Florentia Village -- Jingjin Designer Outlets provide Chinese shoppers the kind of shopping experience unavailable to them before, and it's a perfect destination for a shopping day-trip for families, friends and lovers.
Florentia Village -- Jingjin Designer Outlets is located in Wuqing, a fast-growing town between Beijing and Tianjin. The location is conveniently connected to the adjacent metropolitans by highways and national roads, as well as the Jingjin high-speed railway. There are 22 daily trains stopping at Wuqing and the train station is only 100 meters from the center's main entrance.
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