Rosada Fashion Outlet Pre Acquisition Assessment
About the brand
Rosada is a medium-sized (24,700 m2) Outlet Centre (OC) anchored by Nike, River Woods and Puma. A poor tenant line up and high vacancy levels (c.20%) led to poor footfall (<1m p.a.) and disappointing sales densities (c.€1,650/m2) after opening in 2006.
Resolution Property required consultancy support to confirm the market opportunity, identify growth strategies and give confidence that the performance and asset value could be substantially improved
Quantify the population and retail expenditure within the catchment
Prioritise strategies to expand the catchment, grow turnover and increase rent
Estimate how a proposed second phase and pipeline developments at competing centres will impact future sales growth
WHAT WE DID
Undertook a field based review of competing outlet centres
Used the operator’s existing customer data to define the current catchment
Estimated the extent and scale of the future catchment using a gravity model
Reviewed trading performance by merchandise, price point and life stage to identify underperforming tenants and facilitate repositioning of the offer
Identified an ideal tenant mix and recommended target occupiers
Reviewed capacity for additional floor space and projected the impact of future extensions in terms of market shares, turnover, footfall and sales densities
Resolution Property acquired Rosada Fashion Outlet for €30m in 2012.
Vacancy was reduced to 5%, footfall increased to over 2m and a second phase was added in 2016.
Since this extension, overall turnover has increased by 55% and like for like sales by 25%. New lettings have been secured with Adidas, Guess and Calvin Klein
The centre was sold to McArthurGlen in 2017 for c. €100m