HGI, McArthurGlen in Neumünster shopping centre JV

International fund manager Henderson Global Investors (HGI) has entered into a joint venture agreement with McArthurGlen, Europe's leading developer, owner and manager of designer outlet villages, for the development of the Designer Outlet centre in Neumünster, near Hamburg. The partnership was signed on behalf of HGI's EUR 1.5 bn European Outlet Mall Fund (EOMF).

The opening of the Designer Outlet in Neumünster is planned for autumn 2012, with the initial creation of around 750 jobs. Phase one of the development, part of the overall EUR 120 mln investment, will consist of around 100 retail units, with a GLA of 20,000 m². Preleasing of the units has already commenced and continues to progress ahead of schedule, the companies said.

The Neumünster outlet centre will be the second to open in Germany for both HGI and McArthurGlen. It follows the opening of the Designer Outlet Berlin in 2009 and 2010, which was jointly developed by Henderson and McArthurGlen and now offers a total retail space of 20,600 m².

Germany currently has the lowest rate of designer outlet space in Western Europe, with 0.9 m² of outlet space per 1,000 inhabitants compared with 10 m² in the UK, the most developed market in Europe. This, coupled with the attractiveness of the specific region, creates significant appeal to prospective tenants.

David Williams, fund manager of the European Outlet Mall Fund at HGI, said: 'The fund's strategy is to increase its exposure to core Western European markets where forecast risk adjusted returns are the most attractive. We continue to assess a pipeline of potential acquisitions but will only make investments that match our strict requirements.'

Construction works at the centre are due to start in May.