Simon Property Group Inc., the largest U.S. mall owner, agreed to invest 435 million euros ($569 million) in closely held McArthurGlen Group, Europe’s biggest outlet-center operator.
Simon, based in Indianapolis, will gain an ownership stake in six McArthurGlen properties and become a partner in the London-based firm’s real estate management and development business, the companies said in a statement today. The investment will include properties in Austria, the Netherlands, Italy and the U.K.
McArthurGlen “has one of the best-performing portfolios of high-quality retail real estate assets in Europe,” David Simon, chairman and chief executive officer of Simon Property, said in the statement. “This venture supports and extends our international growth strategy.”
Simon, the largest owner of U.S. outlet centers, also operates similar properties in Asia and has a minority stake in European mall owner Klepierre SA, which is based in Paris.