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TIAA Henderson Real Estate and McArthurGlen to extend Designer Outlet Neumünster

TIAA Henderson Real Estate and McArthurGlen have announced plans for an extension at their McArthurGlen Designer Outlet Neumünster, in Germany.

McArthurGlen Designer Outlet Neumünster is due to start work this summer on its first extension since opening its doors near Hamburg in September 2012. The centre is a joint venture between TIAA Henderson Real Estate (TH Real Estate), on behalf of its European Outlet Mall Fund (EOMF) and McArthurGlen, Europe’s leading owner, developer and manager of designer outlets.

The new phase of McArthurGlen Designer Outlet Neumünster will add 6,900 sq m of GLA (5,000 sq m sales space), offering the opportunity to add around 25 additional stores to the centre.

It will bring the total number of stores to 116, with 26,800 sq m of GLA (20,000 sq m sales space). With plans to open in Autumn 2015, it will build on the centre's position as the largest designer outlet in Northern Germany and home to the most sought-after names in luxury, designer and lifestyle fashion.

Leading brands at the centre include Armani, Corneliani, Escada, Hugo Boss and Michael Kors, as well as Baldinini, Marc Cain, Nike and Pollini.  

EOMF investors comprise a range of pan-European institutional clients, including both McArthurGlen and TH Real Estate themselves. The Fund owns eight outlet mall assets across Europe, in addition to its indirect holding in three UK outlet mall assets via its investment into TH Real Estate’s UK Outlet Mall Partnership.

Henrik Madsen, Managing Director at McArthurGlen, said: “We will be building on McArthurGlen Neumünster's position as a key shopping destination in Northern Germany and Southern Scandinavia. The fact that we are starting work on the second phase just two years after the centre opened, and the arrival of such prestigious new brands, are testament to the centre's success.”

Andrew Rich, Fund Manager at TIAA Henderson Real Estate, said: "The initial success of McArthurGlen Designer Outlet Neumünster follows similar success at our Designer Outlet in Berlin, proving Germany to be an ideal location for designer outlets. It is Europe's biggest country in terms of population and economic wealth, as well as having a strong brand culture, a propensity to quality and a well-developed fashion industry. The first class tenant line-up at Neumünster, coupled with the resilient nature of the outlet sector and McArthurGlen’s expert management, continue to prove a winning combination for our investors. We are confident that adding a second phase will optimise this investment further.

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority.TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services.

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* All figures as at 31 December 2013.