Peel L&P to invest £150 million in Outlets Division, including Gloucester Quays

Gloucester Quays

Lifestyle Outlets, part of Peel L&P, is planning  £150m of further development at its retail outlet centres, and are looking to accelerate this growth by bringing in a new strategic investor.

Significant investment is planned for Gloucester Quays, The Lowry Outlet and MediaCityUK.

CBRE has been appointed to lead the hunt for an investment partner initially for Gloucester Quays, which generates footfall of nearly seven million per year.

Defying the current national retail trend, Gloucester has secured a number of new high-profile tenants – including Hugo Boss, Adidas, Wagamama and most recently Radley.

With its waterfront setting, the outlet centre benefits from increased frequency of visit and dwell times as the inclusion of quality leisure in the scheme has encouraged footfall and positioned the centre as a go-to destination.

To facilitate further development a partner is now being sought initially at Gloucester Quays as Lifestyle Outlets pushes forward exciting development plans across its portfolio.

Neil Lees, Deputy Chairman, Peel Group, said: “The UK outlet market is in a strong position and Gloucester Quays continues to outperform in terms of net income growth and capital value. We believe it is the right time to bring in a partner who we can continue to grow the scheme with. This is part of Peel L&P’s long-term strategy, where we will continue to look to work with third party like-minded investors to develop our assets, like we have successfully achieved at MediaCity UK.

Our experience-led model of outlet shopping is resonating with consumers and operators alike. We’ll continue to invest in and grow the Lifestyle Outlets portfolio as we deliver a new type of elevated shopping experience.”

Gloucester Quays anchors one of the largest placemaking regeneration developments in the UK and has been delivered alongside new homes and commercial space. It has become a major destination for shoppers, families and tourists.

Rhodri Davies, Head of Retail Capital Markets at CBRE, added: “This transaction is a rare opportunity for an investor to gain exposure to a sector with proven year on year footfall and sales growth.”