The world's largest property developer of commercial assets has placed Spain on its radar. And it wants to use the domestic market as a catapult to keep growing.
To do this, Simon Property Group plans to invest some 750 million euros in Spain to open five outlets of luxury brands, a place in which it specializes, for an allocation of about 150 million in each. The intention of the firm is to channel the investment through McArthurGlen, a British company that controls half of the capital and that is currently the largest promoter and manager of outlets in Europe.
Through this company, the projects will be carried out. The first one is already under development: it is an outlet for premium brands that will expand the Plaza Mayor shopping center in Malaga, in which it has invested some 140 million. The project is being coordinated with the Portuguese real estate company Sonae Sierra, and could be ready to be opened later this year. The center will be called Málaga Designer Outlet, it will have 30,000 square miles of leasable area and some 170 stores.
They assure that they are already analyzing several alternatives. In the short term, it foresees betting on the north and east of the country, although it admits that over time it will end up having a presence in Madrid and Barcelona, the two hardcore real estate sectors in the country.
Although they do not give clues about locations or how they will deal with these projects, everything points to a large part of the investment coming from own resources. However, they do not rule out asking for financing from domestic and foreign banks. Neither does it rule out joining forces with other companies in the sector besides Sonae Sierra to carry out the developments.
For the group, the strengths of the domestic market are the demography, the capacity of consumption and the tourist attraction - some attributes that the real estate sector does not want to let slip.
McArthurGlen currently has 24 design centers in eight European countries and Canada, totaling around 3,000 stores, while its reference shareholder (Simon Property Group) is the largest real estate company on the planet: it has more than 200 shopping centers throughout the world and a market value of about 55,000 million dollars (about 45,700 million euros at the current rate).
The above article was written and published in Spanish and has been translated into English. Click here to read the original article.