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Designer outlet specialist McArthurGlen is seeking to exploit a number of potential synergies with its new US joint venture partner Simon Property Group (SPG).

The New York-listed group ranks among the largest listed property companies in the world and owns or has an interest in 326 retail real estate properties in North America and Asia. ‘That is one of the things we liked about this partnership,’ McArthurGlen's CEO Julia Calabrese told PropertyEU. ‘Simon is not only financially strong, but they understand our business. They understand the product, processes and the complexities. That’s what makes it a good fit.’

Under an agreement announced last summer with the London-based outlet centre developer, SPG has acquired stakes in six properties and become a partner in McArthurGlen’s property management and development company together with the company's founder Kaempfer Partners. The US retail giant also brings a vast number of relationships with international brands to the table, Calabrese added. ‘We have some brands in common, but there are others that we don’t have in Europe and which they don’t have in the US. For some luxury brands, we have one set of relationships with the European side of house while Simon has relationships with the US and Canadian side of the house. Those relationships make it easier to make contacts with new counterparts.’

McArthurGlen announced recently that it is developing two new centres in Europe in the next two years in addition to a major new complex adjacent to Vancouver airport in Canada. In Belgium, the company is teaming up with local property company Banimmo on a new scheme in Ghent. The new 52,800 m2 GLA retail and leisure scheme is located in ‘The Loop’ district in the southwest of the Belgian city. The joint venture will develop a 32,000 m2 McArthurGlen Designer Outlet, 14,500 m2 of leisure and a 6,300 m2 big-box store..

Commenting on the project, Calabrese pointed out that it was being built on the city outskirts and that it had the potential to help put the city of Ghent on the international tourist map, attracting tourists who might have otherwise not visited the city. A similar, positive effect has been seen at the company’s other designer outlets, including its centre in the Dutch town of Roermond near the German border. ‘A recent survey of shoppers at our designer outlet in Roermond shows that 42% of shoppers there also visit the city centre of Roermond. Visitors to our outlet in Roermond can walk into the town centre. That city has really been reinvigorated by the additional tourism. I think we will see something similar in Ghent.’

The scheme will be developed in two phases, with the opening planned for end-2016. McArthurGlen Designer Outlet Ghent will be the only designer outlet in the area, with a catchment of over 15 million consumers living within a 90-minute drive of the centre and nearly two million within 30 minutes. This makes it the second-biggest catchment area for a McArthurGlen Designer Outlet after the group’s Roermond outlet which opened in 2001.

McArthurGlen is also developing a new 26,000 m2 scheme in Miramas, Bouches-du-Rhone in the south of France which is likewise due to open in 2016 and which the company will also be marketing at the upcoming Mapic retail fair in Cannes in mid-November. ‘Miramas is another exciting project,’ Calabrese said. She added that a lot of international luxury brands have already committed to open at the new centre which is located about 45 minutes west of Aix-en-Provence, one of the wealthiest towns in the Provence region and also very popular among tourists. Like all its outlets, the Miramas centre will feature prime architecture, she added. ‘We try to capture the essence of the local community and create a village that is aesthetically pleasing.’

Calabrese claims there are also many other potential synergies to be exploited with Simon, for example in sharing best practices. ‘From a marketing and digital perspective, a lot of new and innovative things are happening. We’re very excited about the agreement.’

McArthurGlen currently has 21 designer outlets in eight countries in Europe and three under development. It also working on extensions at seven existing centres. SPG’s move into the European outlet centre sector follows the acquisition in 2012 of a 28.7% stake in Klépierre, the Paris-listed retail REIT. With a portfolio valued at €16.4 bn at end-2012, the French company is one of the leading retail players in Europe with 265 shopping centres in 13 countries across the Continent.