FREY has achieved another major milestone in its European growth strategy by entering into a €650 million strategic partnership with Cale Street, aimed at investing in premium outlets across Europe. As part of this alliance, the partners are acquiring three of Italy’s most iconic shopping villages – Franciacorta (Lombardy), Valdichiana (Tuscany), and Palmanova (near Trieste) – for €410 million from funds managed by Blackstone.
At the same time, FREY is acquiring Land of Fashion, the Italian platform that manages these assets, further strengthening its position as one of the top three outlet operators in Europe.
A Strategic Growth Partnership
FREY has just signed a strategic partnership agreement with Cale Street as part of a drive to speed up its development in the buoyant premium outlet market.
Cale Street is a real estate investment and finance firm established in 2014, in partnership with the Kuwait Investment Office – the London office of the Kuwait Investment Authority, the world’s first sovereign wealth fund, founded in 1953. In this instance, the FREY / Cale Street partnership is buying three premium outlets in Italy for €410 million from funds managed by Blackstone.
This growth opportunity increases FREY’s exposure to such open-air shopping destinations, which offer consumers unique access to premium brands at the best prices along with a one-of-a-kind shopping experience.
Additionally, FREY is contributing the Designer Outlet Berlin – acquired in May for €245 million including transfer tax – to the FREY / Cale Street joint venture. The venture’s purpose is to pursue further acquisition opportunities across Europe. FREY holds a majority stake in the joint venture, which will be fully consolidated in its financial statements.
Premium Outlets in Italy
With these acquisitions, FREY is securing a foothold in one of Europe’s most important outlet markets.
Franciacorta Village (Lombardy)
Ranked among Italy’s top five outlets, Franciacorta Village is located in northern Italy near Milan. With over 180 boutiques and approx. 37,000 sqm of GLA, it benefits from a strong local and regional catchment area. Thanks to its open-air architecture, recent extensions, and a brand mix focused on leading international names, it is one of the country’s most vibrant outlets.
Valdichiana Village (Tuscany)
Situated between Florence and Siena, Valdichiana Village is an iconic shopping destination in the heart of Tuscany, one of Italy’s most popular tourist regions. With more than 130 boutiques and over 31,000 sqm of GLA, it attracts both local and international shoppers. Its Tuscan-style architecture and strategic location along major routes linking Rome, Perugia, and Tuscany’s wine country make it a major retail hub.
Palmanova Village (Friuli Venezia Giulia)
Located between Venice, Austria, and Slovenia, Palmanova Village enjoys a highly strategic cross-border location. With 91 boutiques and more than 22,000 sqm of GLA, it draws both local and international consumers. The outlet is experiencing strong growth and steady increases in footfall, with a catchment area of more than 3.7 million residents and significant further development potential.
Now Among Europe’s Top 3 Outlet Operators
Through its subsidiary ROS (Retail Outlet Shopping), FREY is also acquiring Land of Fashion, a platform specializing in the management of premium outlets. Land of Fashion operates five such outlets in Italy, including the three acquired in this transaction.
With the integration of Designer Outlet Berlin and Land of Fashion, the FREY Group will rank among Europe’s top three outlet operators, managing approximately 400,000 sq m of GLA. This leading position will strengthen relationships with premium brands and provide them with new opportunities to expand within Europe’s most prestigious outlet destinations.
