Tag: premium brands

McArthurGlen to Open 5 Luxury Outlet Centres in Spain

3 January 2018 – Cinco Días

The largest retail asset real estate firm in the world has set its sights on Spain. Simon Property Group will operate through its subsidiary in Europe, called McArthurGlen, in which it holds a 50% stake. This European firm, which specialises in luxury brand and premium outlets, plans to open five such centres in the country, according to José Luis Arenas, Director of Development at McArthurGlen in Spain, speaking to Cinco Días. In total, it plans to invest €750 million, with an average investment of €150 million per site.

McArthurGlen’s first project is already under development. It involves an outlet for luxury brands, which is being built as an extension of the Plaza Mayor shopping centre in Málaga. The firm will invest €140 million in the initiative, together with its partner Sonae Sierra, and its doors are due to open at the end of 2018 (…).

According to Arenas, “We are looking for more short-term opportunities in the north and east of Spain and we will end up entering both Madrid and Barcelona over the medium term” (…).

McArthurGlen is a company headquartered in London and founded in 1993 by the American Joey Kampfer. It is a large developer of designer outlets, given that it owns 24 centres in 8 European countries as well as in Canada, which house 3,000 stores for 1,000 brands in total. Simon Property, as the owner of 50% of the share capital, provides it with an enormous investment capacity. Meanwhile, that US real estate company, under the legal structure of a REIT or Socimi, owns 216 shopping centres around the world and has a market capitalisation of $54.95 billion (€45.7 billion), making it the largest real estate company on the planet (…).

McArthurGlen has joined forces with Sonae Sierra for this first project in Málaga, but has not ruled out teaming up with other property developers in the future. (…). Sonae Sierra is, in turn, a joint venture, between the Portuguese holding company Sonae and the British firm Grosvenor – belonging to Hugh Grosvenor, the Duke of Westminster -. Sonae Sierra owns 76 shopping centres in 14 countries (…).

In terms of the Andalucían outlet, Arenas has set the objective of having between 2 and 3 million visitors per year. “Plaza Mayor by itself already receives more than 10 million people per year and we are going to benefit from those consumers and increase the numbers with new clients. We will also attract tourists”.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake

Luxury Brands Conquer Madrid’s Golden Mile

17 October 2017 – Expansión

Fashion labels such as Sonia Rykiel, Oliver Peoples, Tesla and Audemars Piguet are arriving on the main shopping streets of the Madrilenian neighbourhood of Salamanca, with their first stores in the Spanish market.

The Spanish real estate market is enjoying good times, with investors interested in buying assets and commitments from all kinds of brands to open stores on the country’s main shopping thoroughfares. This interest is very apparent in the Madrilenian neighbourhood of Salamanca, the capital’s luxury shopping area, with the arrival of numerous new brands, such as the car firm Tesla (…).

The exclusive brand behind the 100% electric cars has taken over a store on Calle Serrano in Madrid, just a stone’s throw from Puerta de Alcalá, as Expansión revealed on 2 September. Specifically, Tesla has leased a 275 m2 store, at number 3 on the famous street along the Golden Mile (…).

“The Golden Mile in Madrid is a sought-after area for the majority of the luxury brands that decide to move to the capital. This means that sections  (of the street) that were less appealing until now, such as the uneven side of the road and the bottom section of the street, no longer have as much availability as they used to in previous years. Examples of this are the case of Tesla at number 3, and Malababa at number 8”, explain sources at the consultancy firm Ascana.

Tesla and Malababa are joining Kenzo and Audemars Piguet, the latest luxury brands to open stores on the famous Madrilenian thoroughfare (…).

Other sought-after streets

The commitment to the luxury market does not end on Calle Serrano (…). Adjoining streets, such as Calles Ortega y Gasset, Lagasca and Claudio Coello are also welcoming new international brands. “The interior of the Salamanca neighbourhood has seen the departure of traditional businesses, which cannot afford the current rental prices, and their replacement by premium brands. Not all of the brands can afford to pay for a store on the best stretch of Serrano; such premises are only available to 10% of firms”, says Ignacio Acha, Associate Director of Retail & High Street at Cushman & Wakefield.

“Claudio Coello is continuing to consolidate its position as one of the main thoroughfares in the Salamanca neighbourhood. Several brands are planning to open stores on that street, such as Sonia Rykiel, at number 79, Max Mara Weekend at number 63 and Pedro Miralles, at number 58″, say Ascana’s sources (…).

For brands like that, a store on Serrano or Ortega y Gasset is very expensive. The difference in price between the best store on those streets and on Claudio Coello could be up to three times”, says the Partner at C&W, the consultancy firm that has advised Sonia Rykiel on its operation.

In addition to the upcoming store openings on Claudio Coello, Ortega y Gasset has been selected as the location of choice by another international brand for its debut in Spain. Specifically, the glasses firm Oliver Peoples, owned by the luxury Luxottica group, has taken over the premises on c/Ortega y Gasset, 4, where it will open its first store in the country.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Ingria Investment Sells Commercial Premises On c/Serrano To AEW

2 February 2016 – Mislocales.es

Cushman & Wakefield has advised the investor group in the sale of the property, located at number 7, Calle Serrano in Madrid.

Ingria Investment, an investment fund mainly constituted by Rockspring, has sold a commercial premises to the German company AEW Europe in the heart of Salamanca district of Madrid, precisely in Calle de Serrano, No. 7. The space is part of a building being fully restored, whose works are planned to be finished by the first quarter of 2017.

The commercial premises has a total of 750 m² distributed over two floors, one at street level and one on the first floor. It features a clear area, plus large shop windows and eight balconies, which allow plenty of natural light.

Marc Langenbach, Fund Manager of AEW Europe commented: “As the first investment fund in Spain, this operation is a welcome addition to our portfolio. Our intention is to rent the place to an international retailer during the construction period and we have already detected a strong interest. During the coming months we will continue expanding our portfolio in the main streets of the major cities in Europe”.

According to Beatriz Lopez Cid, Retail Associate in Cushman & Wakefield Spain, “the premium brands are increasingly moving to the Puerta de Alcalá, due to the limited availability of premises. This requires for buildings to be remodeled and adapted to new needs. The closing of this transaction confirms the confidence of investors in HS assets  in Spain, and  indeed, the premises purchased by AEW Europe go in this direction. “

Calle Serrano is considered the most emblematic of the Spanish capital, located in the famous Golden Mile of Madrid, and hosts luxury brands like Prada, Cartier, Louis Vuitton, Versace, and Adolfo Dominguez, among others.

Original story: Mislocales.es

Translation: Aura Ree