The French real estate group Frey, one of the leading outlet operators in Europe, announces the takeover of three Italian outlet centers for 410 million euros. This high investment underlines the growing importance of outlets for premium brands.
Three new outlet centers in Frey’s portfolio
On August 18, Frey announced the takeover of the Outlet Center Franciacorta (Lombardy), Valdichiana (Tuscany) and Palmanova (near Trieste). In these shopping destinations, premium brands such as Calvin Klein, Adidas, K-Way and numerous Italian brands offer their products at reduced prices. The transaction was carried out with funds that are managed by Blackstone and is supported by a strategic partnership with the real estate investment company Cale Street of 650 million euros.
With the takeover, Frey extends its portfolio by 90,000 square meters of sales area and eleven million visitors: inside annually. The company thus strengthens its position in the outlet market and becomes an important player in the premium fashion trade. Frey already has the operator Ros (Retail Outlet Shopping) as well as the designer Outlet Berlin and several ‘shopping promenades’ since 2025, in which articles are sold at regular prices.
Outlet: The solution for premium brands?
According to the ‘European Outlet Industry Review 2025’ (EOIR) of Ken Gunn Consulting, outlayed outlet centers in recent years. The report estimates the sales of brands in the 210 European outlet centers in 2024 to EUR 23 billion-around 23 percent more than 2019 and 7.2 percent more than 2023.
Outlets thus represent a strategic growth channel for fashion brands. This applies in particular to premium brands that today face a fragmented market between luxury and almost fashion or ultra-fast fashion. With this high investment, Frey strengthens a model in which premium fashion becomes more accessible via outlets. This is a way for the brands to test differentiated price strategies.
However, there is a risk that the brand image is watered down by using this channel. According to an Ecostra/Magdus survey from 2024, the composition of the offer in the outlet center remains one of the most important criteria when choosing a brand. This mix influences both the attractiveness of the brand and the center of the center, another crucial criterion for the brands.
However, as the Ecostra/Magdus study shows, not all outlet centers are satisfactory for brands. Some centers were negatively assessed by the surveyed brands, especially due to high costs and unsatisfactory returns.
Frey: The curator
Similar to its competitors McArthurglen or Value Retail, Frey becomes a central player with the takeover of three important locations in Italy. The company defines the brand mix, architecture, the customer experience and thus the entire atmosphere of the place. This role is crucial because brands are increasingly dependent on the quality of the destinations to attract tourists and consumers: inside.
Frey thus influences the visibility and the commercial success of the brands in his outlets. As a curator, the company keeps control of the attractiveness of the location thanks to its retail expertise.
According to Antoine Frey, President and CEO of Frey, Italian outlets are not perceived as a pure bargain hunt, but as a high-quality shopping experience, the premium brands are upgraded. In the press release on the transaction, the CEO explained: “Italy is the largest outlet market in continental Europe, an area in which the hottest brands find demanding, loyal and buying local customers. It is also a market that is deeply anchored in retail culture with a preference for open-air shopping, service quality and premium.”
With a turnover of over 360 million euros (in the last twelve months to July 31, 2025), which was generated by the partner brands, the three Italian outlets present themselves as an important hub for premium brands. They offer Frey a unique platform to win an international clientele.
This article was used with digital tools translated.
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