M&G’s BauMont Real Estate Capital acquires retail asset in Italy

BauMont Real Estate Capital—part of M&G Real Estate (M&G)—has completed the acquisition of the Città Sant'Angelo Outlet Village.

Città Sant'Angelo Outlet Village

The retail asset, located near Pescara in Italy’s Abruzzo region, was purchased from a fund managed by GWM.

Following the transaction, Reve Asset Management—a retail-focused management and investment firm within the GWM Group that has overseen the outlet's repositioning since 2020—will co-invest alongside BauMont and remain on board as the operating partner.

Originally opened in 2009, the open-air outlet centre underwent a second development expansion phase in 2024.

The complex encompasses approximately 29,200 m2 of floor area, divided across 110 retail units. It also features around 4,000 parking spaces.

The village serves a regional catchment area of over 1.8 million residents and attracts roughly 1.7 million visitors annually.

The centre maintains a high occupancy level, hosting a diverse mix of prominent domestic and international brands.

With the acquisition finalised, BauMont intends to leverage its value-add expertise to further optimise the asset.

The investment manager will focus its immediate efforts on finalising the leasing program for the recently completed 2024 extension. Additionally, BauMont and Reve Asset Management plan to upgrade the overall customer experience to ensure the destination aligns with evolving consumer habits and modern retailer requirements.

Olivier Vellay, partner at BauMont Real Estate Capital, commented: "This acquisition reflects our strategy of investing in high-quality assets with the potential to increase income streams and generate long-term performance. Supported by strong tourism, resilient demand, and a limited supply of new properties, the outlet sector in Italy has particularly solid fundamentals. As the only branded outlet within a two-hour radius, Città Sant'Angelo benefits from an established catchment area, strong consumer demand, and limited competition, and is therefore well-positioned to fully capture these dynamics."