Queensland scores Australia's largest-ever single asset retail buyout; Millennial consumers boost Tiffany & Co's coffers; Victoria Beckham attracts $AU53 million investment; and global investor pays $AU70 million for NEST fragrances.
Queensland scores Australia's largest-ever single asset retail buyout
Key regional shopping centres across the country are becoming even more of a goldmine as state governments spend billions of dollars to create lifestyle and employment hubs away from capital city CBDs. The AMP Capital Shopping Centre Fund and the AMP Capital Diversified Property Fund have acquired a joint 50 per cent stake with management rights in the Indooroopilly Shopping Centre for $800 million, Australia's largest-ever single asset retail buyout.
There was plenty of interest from local and international investors because the centre services the inner western and southwestern suburbs of Brisbane and has an annual footfall of 12 million visitors. Indooroopilly has been expanded three times since its opening in 1970. In 2014, it was redeveloped to the tune of $450 million to encompass David Jones and Myer stores, Kmart, Target, a 16 screen cinema complex and over 300 speciality stores, including Mecca Cosmetica and the first Uniqlo and H&M stores in Queensland.
Millennial consumers boost Tiffany & Co's coffers
Tiffany & Co has been reaching out to Millennials with innovative fashion jewellery. As we saw in Sydney last week at one of the best media and influencer events of the year in ritzy Darling Point, it's an approach that also extends to its fragrance license with Coty. The upscale US jeweller launched seven fragrances in partnership with Chanel from 1987 to 2003, but the use of the famous Robin's egg blue box to house its latest blockbuster scent marks a truly fresh start.
CEO Alessandro Bogliolo joined Tiffany in October and the first quarter under his watch delivered stronger-than-expected sales. Global Q3 sales totalled $US976.2 million – up from $US949.3 million for the same period last year. The US market led the way with a 1 per cent rise to $US421 million and strong growth in China lifted Q3 sales in the Asia/Pacific region by 15 per cent to $US283 million. Japan is such a strong market for the luxury brand that it is listed separately. But the yen's weaker performance against the US dollar caused sales to dip 8 per cent to $US139 million. Total sales in Europe rose 5 per cent to $US110 million.
Bogliolo believes that Tiffany is back on track and will continue to attract younger consumers worldwide. "Looking forward, we will increasingly capitalise on the strength of the Tiffany & Co brand with stronger organisational focus on innovation in product digital, communication and the customer experience".
Victoria Beckham attracts $AU53 million investment
Victoria Beckham has had a few ups and downs building her eponymous fashion empire. But global revenues for 2016 reached $AU63.67 million and Victoria Beckham Limited (VBL) has enjoyed double-digit growth for the first half of fiscal 2017. The business has a market value of $AU176.86 million, prompting NEO Investment Partners, which specialises in small to mid-size companies, to acquire a minority stake for $AU53 million.
Beckham kicked a major beauty goal with her first capsule collection with Estée Lauder in 2016, which sold out worldwide. Her second lineup debuted this Northern Hemisphere Autumn to equal acclaim. According to a report in WWD, the funding injection will be used to pay down debt, build on Beckham's in-store and online sales and springboard further expansion in skincare and fragrance. She is no stranger to the perfume market and released six fragrances in partnership with Coty from 2006 to 2011.
Global investor pays $AU70 million for NEST fragrances
Eurazeo Brands, a globally-listed investment company with $US8 billion in assets, has acquired a majority stake in NEST fragrances for $US70 million. Based in New York, NEST is a fast-growing brand offering more than 30 home and fine fragrance sold through luxury department stores, the QVC shopping channel and its e-commerce website. The company was founded in 2008 by Laura Slatkin, who will remain Chairman with a minority holding.
A debut investment for Eurazeo, the investor has earmarked $US800 million to acquire more US and European companies with major growth potential in beauty, fashion, homewares, leisure and food. With a global network and offices in New York, Paris, Shanghai and Sao Paolo, the company plans to develop NEST into a global brand by developing new product offerings and expanding retail and online purchasing channels.
Snippets from the wires
- Boardriders Inc, the parent company of Quiksilver, has offered to buy competitor Billabong for $AU198 million. A deal slated to bring together the surfwear industry's leading players under one corporate umbrella.
- It's taken 73 year old Diana Ross a lifetime to enter the lucrative celebrity fragrance market. This week the former lead singer of The Supremes debuts her first signature fragrance – Diamond Diana – exclusively on HSN in the US. For die-hard fans, a special holiday package offers the fragrance and a CD of Christmas songs from Ms Ross.
- Beauty packaging is a mega-business. Private equity firm Sun Capital is reviewing final bids for Albea Packaging, the world's largest manufacturer of beauty and personal care packaging. Analysts estimate the price tag will be around $US1.5 billion.
- E-Mart exited China in March after 20 years of operation. A few months earlier, South Korea's largest retailer signed a franchise deal with Walgreens Boots Alliance to launch the Boots brand in its home market. The company has also announced it will expand to the Middle East in the new year and open six of its Scentence brand stores in Saudi Arabia.
