Värde Partners Sells Festival Park, Mallorca

LONDON – Värde Partners agreed to the sale of Festival Park, Mallorca’s premier outlet centre, to the VIA Outlets, a joint venture between Hammerson, APG, Meyer Bergman and Value Retail.  Total consideration was in excess of €100 million. Värde acquired the asset as part of a portfolio in December 2011 through a sales process run by APN European Retail Management Group and its lender.

Post-acquisition, Värde undertook a capital expenditure program to re-configure the centre and support a revised letting strategy, appointing outlet specialist Value Retail as operating partner in the project.  As a result, the 32,000 square meter centre attracted over 4 million visitors last year and has secured lettings to major retail brands including Nike, Reebok, Calvin Klein, Desigual, Tommy Hilfiger and Lacoste.  The centre is also home to Mallorca’s largest cinema multiplex with a strong family leisure and restaurant offering.

“The Spanish real estate market has improved significantly from when we acquired the asset in 2011, at the depth of the crisis,” said Tim Mooney, Partner and Co-Head of Global Real Estate at Värde. “This improvement is reflected in the operating performance of Festival Park as well as investor appetite for Spanish real estate assets.  We successfully repositioned this centre by combining our resources and expertise with that of Value Retail.  We are delighted that Value Retail, through its VR Retail Advisors division, will continue to be involved in operating the asset under the new ownership structure, ensuring continuity for our tenants.”

About Värde Partners:
Värde Partners is a $10 billion global alternative investment firm that invests across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure.  The Firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients.  Now in its third decade, Värde employs 200 people with main offices in Minneapolis, London and Singapore.