Frey bags Italian outlets for €410m, forges €650m partnership

European shopping centre operator Frey is expanding its presence in the premium outlet market by acquiring three major shopping villages in Italy from Blackstone for €410 mln. 

Franciacorta Village

Franciacorta, situated near Milan, boasts over 180 stores and 37,000 m2 of retail space, drawing a strong consumer base due to its open-air design, recent expansions, and focus on major international brands. 
Valdichiana Village, nestled between Florence and Siena in Tuscany, offers over 130 boutiques across 31,000 m2, attracting both local and international shoppers with its Tuscan architectural style and strategic positioning near major travel routes. 
Palmanova Village, located between Venice, Austria, and Slovenia, serves a broad local and international customer base with 91 boutiques within its 22,000 m2 and experiences continuous footfall growth. 
Collectively, these three outlets welcomed approximately 11 million visitors and generated over €360 mln in sales for their partner brands. Following these acquisitions and planned asset disposals in the second half of 2025, Frey aims to maintain a conservative financial approach, targeting a Loan-to-Value (LTV) ratio below 45%.
This deal is part of a broader €650 mln strategic partnership with Cale Street, a real estate firm associated with the Kuwait Investment Authority, focused on European outlet investments. 
Simultaneously, Frey is acquiring Land of Fashion, the management platform managing five premium outlets in Italy (including the three Frey is purchasing), solidifying its position as a leading European outlet operator. This partnership allows Frey to accelerate its growth in the thriving premium outlet sector. 
Designer Outlet Berlin, previously acquired by Frey, is also being included in this FREY/Cale Street joint venture, which will explore further acquisition opportunities in Europe. Frey will hold a majority stake and fully consolidate the joint venture in its financial statements. 
Antoine Frey, chairman and CEO of Frey, commented: “Frey now ranks among Europe’s top 3 outlet operators. This is the culmination of a conscious and perfectly executed strategy consisting of a first-rank partnership, the acquisition of three premium assets, and a reinforced asset management platform. Italy is Continental Europe’s biggest outlet market, one in which the world’s highest-tier brands connect with a demanding and loyal local client base with considerable purchasing power. These transactions expand Frey’s European footprint and create further impetus for its growth profile, while also reinforcing its sustainable retail model.”