Frey has taken another major step in its European expansion. The group headed by Antoine Frey, which has already made a name for itself this year with the acquisition of Designer Outlet Berlin for €230 million, has acquired three premium outlets in Italy from funds managed by Blackstone, for €410 million.
This transaction is part of a €650 million strategic partnership dedicated to investing in premium outlets in Europe. The partnership is with Cale Street, a real estate investment and finance company. Cale Street was founded in 2014 in partnership with the Kuwait Investment Office, the London office of the Kuwait Investment Authority, the world's first sovereign wealth fund, which was founded in 1953.
The JV between Frey and Cale Street has acquired three premium outlets in Italy from funds managed by Blackstone: Franciacorta, Lombardy; Valdichiana, Tuscany; and Palmanova, near Trieste.
In addition, Designer Outlet Berlin, acquired last May for €245 million including transfer duties, has also been contributed to this joint venture, "the purpose of which is to look into other acquisition opportunities across Europe", according to Frey, which holds a majority stake in it.
Frey joins the top 3 outlets managers in Europe
Frey, through its subsidiary ROS (Retail Outlet Shopping), is also taking over Land of Fashion, a management company specialized in premium outlets. It manages five outlets in Italy, including the three assets signed by the JV between Frey and Cale Street.
"After folding in Designer Outlet Berlin and now Land of Fashion, Frey Group will rank among Europe’s top 3 outlet operators with circa 400,000 square metres under management," said Frey in a press release, which, following these transactions, and including the asset disposals planned for the second half of 2025, indicates that it "will maintain a prudent financial policy with an LTV ratio of less than 45%".
Antoine Frey, chairman and chief executive of Frey, said in the release: “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. It is also a market with deep roots in retail culture and a huge appetite for open-air shopping, high-quality service and premium products. These transactions expand FREY’s European footprint and create further impetus for its growth profile, while also reinforcing its sustainable retail model.”
The three sites acquired by the JV between Frey and Cale Street comprise a total retail area of over 90,000 square metres. They welcomed around 11 million visitors over the last 12 months to July 31, 2025, and generated sales of over €360 million.
The Franciacorta Village is in the immediate vicinity of Milan and ranks among the top five Italian outlets. It boasts over 180 stores and almost 37,000 square meters of gross leasable area.
Valdichiana Village is located between Florence and Siena, in the heart of Tuscany. It comprises over 31,000 square meters of GLA and more than 130 stores.
Finally, Palmanova Village is located between Venice, Austria and Slovenia. It features over 22,000 square meters of GLA and 91 boutiques.