VIA Outlets, one of Continental Europe’s fastest-expanding owner-operator of premium fashion outlets by gross lettable area (GLA) over the past decade, has had its Long-Term Issuer Default Rating (IDR) and senior unsecured rating of BBB+ with a stable outlook affirmed by Fitch Ratings.
The ratings affirmation reflects VIA Outlets’ well-performing portfolio of pan-European premium outlets, a growing and resilient channel. VIA Outlets’ centres benefit from active management, dominant catchment areas, strong brand partnerships, and good transport accessibility. Fitch forecasts further rental growth in 2025, driven by:
- The recent Sevilla Fashion Outlet expansion
- New brands, rising footfall, and brand sales
- Rent indexation and ratchet mechanisms
The Fitch rating report stated: “VIA Outlets benefits from its actively managed portfolio as variable turnover rent constitutes around 20 – 25 percent of total gross rental income, driving a close tenant-landlord relationship, compared with the traditional ‘full-service’ retail shopping centres. This lease structure, along with consistent gross rental income growth, leads to property valuation gains more immediately than full-service or traditional retail assets, which tend to rely on long-term lease expiries for cash rent increases.”
VIA Outlets is advancing several key projects, including:
- 4,977 sqm extension of Vila do Conde Porto Fashion Outlet (18% of current GLA), due for completion by late 2025.
- Remodelling of the Canal Street in Freeport Lisboa Fashion Outlet in Portugal.
- 4,862 sqm expansion of Landquart Fashion Outlet in the Greater Zurich Region of Switzerland (22 percent of current GLA), set for completion in Q1 2026.
The expansion of Sevilla Fashion Outlet in Spain, which opened in late 2023, achieved:
- A 21% increase in footfall.
- An 18% increase in brand sales in the first half of 2024.
VIA Outlets’ balance sheet benefits from fixed-rate debt at low average rates, primarily comprising unsecured bonds, with no refinancing needs until 2028. The company also maintains a low loan-to-value ratio (LTV), providing financial headroom for targeted acquisitions of dominant, under-managed assets.
Peter Stals, Chief Financial Officer at VIA Outlets, commented: “Fitch’s rating affirmation recognises the resilient characteristics of the outlet channel and the quality of VIA Outlets’ property portfolio, which shows consistent year-on-year growth in operational and financial performance. We continue to elevate and expand our centres as part of our organic growth strategy of remarketing, remerchandising, and remodelling.”
