Simon Property and McArthurGlen form joint venture

European designer outlet group McArthurGlen is forming

a joint venture with commercial shopping centre giant Simon Property, which will see the global property company acquire an ownership interest in six McArthurGlen properties in the UK, Italy, Austria, the Netherlands, and Canada.

As part of the joint venture, Simon Property will invest an initial equity of approximately 435 million euros in the European designer outlet retailer, and will become a partner in its property management and development company.

Commenting on the deal, David Simon, chairman and CEO of Simon Property Group, said: "We are excited by the opportunity to partner with McArthurGlen, which has one of the best-performing portfolios of high-quality retail real estate assets in Europe and a strong team of professionals.

“This venture supports and extends our international growth strategy, and we look forward to collaborating on ways to further enhance McArthurGlen's platform for retailers and customers."

J.W. Kaempfer, chairman and founder of McArthurGlen Group, added: "We welcome the opportunity to join with Simon Property Group. As the largest operator of malls and premium outlets in the United States and Asia, SPG brings unparalleled resources, expertise, and relationships that will help us offer our sought-after European and international luxury and premium brands in an even more exciting designer outlet shopping experience."

This is not Simon Property’s first foray into European commercial centres; in 2012, the Group invested 2.3 billion US dollars in French shopping centre operator Klépierre.