3 January 2018 – Cinco Días
The largest retail asset real estate firm in the world has set its sights on Spain. Simon Property Group will operate through its subsidiary in Europe, called McArthurGlen, in which it holds a 50% stake. This European firm, which specialises in luxury brand and premium outlets, plans to open five such centres in the country, according to José Luis Arenas, Director of Development at McArthurGlen in Spain, speaking to Cinco Días. In total, it plans to invest €750 million, with an average investment of €150 million per site.
McArthurGlen’s first project is already under development. It involves an outlet for luxury brands, which is being built as an extension of the Plaza Mayor shopping centre in Málaga. The firm will invest €140 million in the initiative, together with its partner Sonae Sierra, and its doors are due to open at the end of 2018 (…).
According to Arenas, “We are looking for more short-term opportunities in the north and east of Spain and we will end up entering both Madrid and Barcelona over the medium term” (…).
McArthurGlen is a company headquartered in London and founded in 1993 by the American Joey Kampfer. It is a large developer of designer outlets, given that it owns 24 centres in 8 European countries as well as in Canada, which house 3,000 stores for 1,000 brands in total. Simon Property, as the owner of 50% of the share capital, provides it with an enormous investment capacity. Meanwhile, that US real estate company, under the legal structure of a REIT or Socimi, owns 216 shopping centres around the world and has a market capitalisation of $54.95 billion (€45.7 billion), making it the largest real estate company on the planet (…).
McArthurGlen has joined forces with Sonae Sierra for this first project in Málaga, but has not ruled out teaming up with other property developers in the future. (…). Sonae Sierra is, in turn, a joint venture, between the Portuguese holding company Sonae and the British firm Grosvenor – belonging to Hugh Grosvenor, the Duke of Westminster -. Sonae Sierra owns 76 shopping centres in 14 countries (…).
In terms of the Andalucían outlet, Arenas has set the objective of having between 2 and 3 million visitors per year. “Plaza Mayor by itself already receives more than 10 million people per year and we are going to benefit from those consumers and increase the numbers with new clients. We will also attract tourists”.
Original story: Cinco Días (by Alfonso Simón Ruiz)
Translation: Carmel Drake
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Source:: AURA Real Estate Experts