DEGI acquires Tuscany factory outlet centre

DEGI acquires Tuscany factory outlet centre
5 Jul, 2006, Tuscany

DEGI Deutsche Gesellschaft für Immobilienfonds mbH has purchased the Valdichiana Outlet Village between Florence and Rome for DEGI INTERNATIONAL fund by a share deal. The investment volume totals approximately €88.5 million; the seller is the Italian property company, Gruppo Stilo,the development company of the Percassi Group, which will continue to handle management and letting of the centre.

The property is situated about 30 kilometres south of Arezzo directly on the A1 Milan-Rome motorway, and close to the Siena-Perugia highway. The total floor space, currently measuring 17,540 sq m, has all been let to prestigious international and national branded goods vendors. The shopping centre's architecture is attractive and contemporary; promenades, plus some small piazzas, contribute some typical elements of Tuscan townscapes. The centre's catchment area includes almost four million people. Jones Lang LaSalle and DLA Piper Rudnick have acted as the sole advisors to DEGI on the above transaction.

Valdichiana Outlet Village was developed by Gruppo Stilo as part of their extensive retail development programme in Italy and represents the Group's second Factory Outlet initiative, following the successful completion of the Franciacorta Outlet Village near Brescia in northern Italy. Gruppo Stilo was represented in this transaction by Cushman & Wakefield.
"We are confident that factory outlet centres will permanently change the structure of Italian retailing. The factors driving success here are size and professional centre management," says Bärbel Schomberg, Speaker of DEGI's Management Board. Although there have been autonomous factory outlet centres in Italy only since 2000, the country has developed into Europe's second-largest market in this segment, after the UK, with eleven centres currently up and running, most of them in Northern Italy. The population of Tuscany and neighbouring Umbria, the centre's catchment area, has above-average purchasing power compared to the rest of Italy. In addition, thanks to its location on the "Autostrada del Sole", the centre will attract a lot of tourists.

For 2006, DEGI is anticipating around 3.5 million visitors, and is aiming to expand the centre. By early 2007, the intention is to upsize the area to around 32,000 sq m, and to increase the number of shops from its current 65 to approximately 125. Customers will then have 3,000 parking slots available.

Factory Outlets in Tuscany

Fashion insiders know that you need to look beyond Via Tornabuoni in Florence and Via Condotti in Rome to find Italy's best shopping. A number of outlet malls hidden in the hills of Tuscany—especially in the Valdarno valley southeast of Florence—promise amazing savings on designer duds. Unlike in U.S. outlet malls, the goods here aren't manufactured specifically for discount sales; they're the real thing, marked down by 50 percent or better. Of course, outlet shopping is always hit-or-miss, but true shoppers know that the hunt is half the fun.
You'll need a car; otherwise arrange a tour through a travel agency that specializes in Tuscany

Prada Factory Outlet

68 Località LevanellaMontevarchi52025Tel: 39 055 91 901
Trust Italy's most exclusive label to make its outlet store, just outside the town of Montevarchi, almost impossible to find, with signage so minimal that it feels like a treasure hunt. To get there, head south from Florence on the A1 Autostrada and take the Val d'Arno exit. Bear right, following the signs for Montevarchi. At the large roundabout, exit to the left, continuing toward Arezzo. Pass through Montevarchi and into Località Levanella. Shortly after the village, you'll see an Agip gas station on your right. Take the left at the flashing light immediately after it, following the signs for the Zona Industriale and "I Pellettieri d'Italia"—the official name of this huge gray and black warehouse with a sawtooth roof. Even when you've found a place to park the car, you're not quite in: First, you have to take a number from the ticket machine, then wait your turn, perhaps over a pricey cappuccino at the Prada bar on the corner, where an electronic number counter keeps you posted on progress. The reward is men's and women's clothing and accessories from both the Prada and Miu Miu labels at a fraction of the usual price (men's suits, for example, can be picked up for a third of what you would pay in London or New York, sometimes less). The outlet is open from 10 a.m. to 7 p.m. Monday to Saturday and 2 p.m. to 7:30 p.m. on Sunday; smart shoppers know to avoid the weekend crush.

The Mall

8 Via EuropaLeccioReggello50060Tel: 39 055 865 7775www.themall.it
This smart new open-air mall, way out in the boonies about 40 minutes southeast of Florence, features an ever-growing strip of outlets from Italy's top design houses (and others). The Mall now hosts Agnona, Alexander McQueen, Balenciaga, Bottega Veneta, Burberry, Emanuel Ungaro, Ermenegildo Zegna, Fendi, Giorgio Armani, Gucci, Hogan, La Perla, Loro Piana, Pucci, Salvatore Ferragamo, Sergio Rossi, Stella McCartney, Tod's, Valentino, Yohji Yamamoto, and Yves