The designer outlet mall sector just got more competitive in Europe.
Simon Property Group Inc. and McArthurGlen said they have signed a definitive agreement to form a joint venture. Simon will invest about 435 million euros, or $565.5 million at current exchange, in McArthurGlen, one of the leading owners of upscale European designer outlets around the world.
Simon will also acquire an ownership interest in six properties and will become a partner in McArthurGlen’s management and development company. Simon’s initial equity investment will include assets in Austria, Italy, the Netherlands, the U.K. and Canada, where an outlet mall is under construction in Vancouver. Simon has an outlet center under way in Toronto.
Simon has been increasing its investments overseas. A retail expert said Simon could leverage its relationships with a broad array of companies to bring more American brands to Europe while helping European brands set up shop in the U.S. The outlet malls will likely have a mix of luxury brands and strong local merchants, he said.
Simon is one of the largest mall operators in Asia. Simon operates Premium Outlet centers in Japan through a partnership with Mitsubishi Estate Co. and Sojitz Corp. Simon has also entered into a joint venture with Shinsegae Co. to build Premium Outlets in South Korea.
The expert said that between the Toronto project and Simon’s joint-ownership of properties in Asia, there was an obvious hole in Europe. The deal with McArthurGlen should go a long way toward rectifying that, he said.
David Simon, chairman and chief executive officer of Simon Property Group, said, “McArthurGlen has one of the best-performing portfolios of high-quality retail real estate assets in Europe. This venture supports and extends our international growth strategy.”
“With this new partnership, McArthurGlen looks forward to continuing our robust expansion in Europe, North America and perhaps new untapped opportunities,” said J.W. Kaempfer, chairman and founder of McArthurGlen.
This is not Simon’s first foray into the European shopping center industry. The Indianapolis-based real estate firm last year paid $2.3 billion for a 28.7 percent stake in Klepierre, Europe’s second-largest publicly traded mall operator, based in France.
Simon in 2009 purchased shares in Capital Shopping Centers Group, then made an unsuccessful bid to buy the U.K. company in 2011. Simon got into a takeover fight with an investment group for General Growth Properties Inc. when the U.S. mall operator was in bankruptcy but the investment group prevailed.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)