Simon Property Group, Inc. and McArthurGlen Group announced today that they have signed a definitive agreement to form a joint venture through which SPG will invest in McArthurGlen, the leader in upscale, European designer outlets.
Under the terms of the agreement, which is subject to customary closing conditions, SPG will acquire an ownership interest in six properties and will also become a partner in McArthurGlen's property management and development company. Simon Property Group's ownership interest involves an initial equity investment of approximately €435 million, and will include assets in Austria, Italy, the Netherlands, the United Kingdom and Canada.
David Simon, Chairman and Chief Executive Officer 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. "Joey" Kaempfer, Chairman and founder of McArthurGlen Group, said: "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."
Source: PRNewswire
