Retail Property - Freeport lines up sale of portfolio

Outlet mall developer and operator Freeport has hung a potential 'for sale' sign over its portfolio of UK and European centres. The move came as the company rebuffed a proposed bid from a management buy-in team.

A consortium headed by ex-BAA McArthurGlen director Iestyn Roberts had made a conditional offer pitched at between 350p and 380p, but Freeport Chairman Sean Collidge dismissed it as 'wholly inadequate.'

He said the offer was 'opportunistically timed to deprive Freeport shareholders of the benefit of the surpluses from Freeport's European developments.'

As an alternative, he has commissioned CB Richard Ellis and Colliers Conrad Ritblat Erdman to value the two developments currently under construction at Excalibur in the Czech Republic and Lisbon in Portugal, which could be a prelude to a sale.

'The Board is committed to maximising the value obtained from each outlet village through selling such assets as they mature,' Collidge said. 'Proceeds from any disposals raised in excess of Freeport's development needs will be returned to shareholders.'