Kenmore and Revcap have sold the Zweibrucken Factory Outlet Centre, to NEINVER. The Spanish-based European real estate company acquired the asset on behalf of its IRUS European Retail Property Fund for a total consideration of €112.5M.

Comprising a total gross lettable area of 23,600 sq m and 1,750 parking spaces, the Zweibrucken Designer Outlet, which was opened in 2001 and developed over the course of seven years, is Germany’s largest designer outlet centre. With over 100 top brand-name shops, including Versace, Tommy Hillfiger, Polo Ralph Lauren, Levis, Nike, Burberry, Diesel and Lacoste, it also represents one of only five purpose-built designer outlet centres in the whole of Germany.

Situated strategically close to the borders of both France and Luxemburg, in the South-West German state of Rheinland-Pfalz, it benefits from a catchment area of approximately 15 million people. Kenmore, on behalf of its European fund, Trading Places NV, acquired the completed first phase from Lehman Brothers in December 2005 and subsequently developed out Phase 2 and 3, adding a total of 50 units.

NEINVER intends to add a fourth phase to the centre. This acquisition brings NEINVER’s total portfolio of European retail outlets to circa. 195,000 sq m.

Rob Brook, Managing Director of Kenmore Property Group, comments: "Along with our partners Revcap and OCI, we have been able to execute a plan to enhance and develop a high quality asset. Furthermore, the success of this project has been proven by the achievement of securing a sale at a competitive price in a difficult market."

Manuel Lagares, CEO of NEINVER, adds:

"This acquisition ends a year in which we have successfully added 95,000 sq m of assets in Italy, Spain and Poland to the fund’s portfolio. Like the Castel Guelfo Outlet City in Italy, NEINVER was attracted to securing the Zweibrücken Designer Outlet owing to its strong retail performance, location and further investment opportunities on offer. Alongside the San Sebastian de los Reyes FACTORY, the Alegra Business and Leisure Park in Madrid and the Wroclaw FACTORY in Poland, it makes a welcome addition to the portfolio and fulfills NEINVER’s commitment to its investors."

King Sturge acted on behalf of Kenmore Property Group and DTZ advised NEINVER.

Press release from : www.kenmore.co.uk, 09 February 2009