The French FREY Group is a developer, investor, and manager, a real estate company listed on the Paris Stock Exchange, specializing in developing and operating open-air shopping centres in Europe. A pioneer in environmentally friendly retail parks with its Greencenter concept and inventor of the next generation of ‘Shopping Promenade’ open-air shopping centres. The “Société à Mission” and B Corp™ certified FREY Group fully engage in a more responsible, greener society that is socially beneficial to its ecosystem and stakeholders. As the company knows just how essential retail is to urban diversity, social link, local economic resilience, and environmental transition, its mission is restoring retail as a service for the common good. FREY also conducts major urban renewal operations and mixed-use projects.
A win-win situation for ROS and FREY
The acquisition of ROS gives the FREY Group access to the European outlet market, strengthens its position in Europe, and supports the company’s vision to become the European market leader in open retail and high-end shopping destinations. While traditional shopping centres have suffered during and after the pandemic, outlet centres and retail parks have proven their resilience as open-air shopping destinations. Even with rising inflation, outlet centres are popular shopping destinations. ROS was able to close in 2023 with a +16.5 percent in sales in comparison to 2022. Further synergies will result from the development of new outlet locations, taking into account the expansion plans of the brand partners in the ROS network, as well as in the enrichment and enhancement of the category mix and marketing. ROS, in turn, gains a financially strong property group in the background to help with the asset management of the managed portfolio and seize new opportunities for growth in the European outlet market. Further synergies will arise in the areas of ESG and the increasing digitalisation of the retail property sector.
Antoine Frey, Chairman and Chief Executive Officer of FREY, made the following statement: “We are delighted to announce what is a major strategic operation for FREY. Acquiring ROS, Europe’s 4th largest outlet operator, will not only give us access to a very high-performing asset class but also offer us vastly diversified geographic exposure. ROS is a fabulous company led by some of the outlet market’s most talented individuals and has successfully risen to the very top of the league in Europe. FREY’s strategy will focus on stepping up ROS’ position in third-party management, but also on tapping into its experience and reputation to build up a portfolio that is dedicated specifically to outlets by acquiring or developing assets. The first example of this strategy is the recently launched operation to develop the Malmö Designer Village. FREY now boasts over 31 open-air shopping destinations in operation across 9 European countries and is thus consolidating its leading position in the retail asset classes that are most sought after by consumers, brand partners, and investors alike.”
Thomas Reichenauer, Co-founder and Managing Director at ROS commented on the deal: “FREY is the perfect investor for ROS Retail Outlet Shopping for further growth in the European outlet market and the development of new, unique and innovative open-air shopping destinations. We share the same vision of creating sustainable, socially responsible, and attractive shopping destinations that meet the current needs of customers and those of the next generations. We see many synergies and new opportunities to reinvent outlet shopping with FREY’s financial strength and experience. In this context, we congratulate FREY on the purchase of Malmö Designer Village, which is a perfect outlet location. We look forward to a successful journey together to learn from each other, inspire each other, and create something new.”
FREY is already drawing on its new expertise and has announced that it is acquiring its first outlet project in Malmö, Sweden. The Malmö Designer Village is currently under development and is located at the very heart of Scandinavia’s largest catchment area (with a population of 4 million and attracting 26 million tourists each year from within a 90-minute radius), which includes the cities of Malmö, Helsingborg, and Copenhagen. With all the necessary authorizations free of any objections having been obtained and the pre-letting process already well underway, work is scheduled to begin by the end of 2024. A first phase covering a surface area of 18,000 sqm will open in the second half of 2026, while a second phase spanning 8,000 sqm is set to follow from the first. The project will eventually become the Nordic market’s biggest outlet, hosting over 135 national and international brands including Adidas, Levi’s, Marc O’Polo, and Skechers. The Malmö Designer Village project will receive BREEAM Excellent certification, in keeping with FREY’s exacting ESG policy. Some €100 million is to be invested under phase 1 and the target yield on cost is above 8 percent.
