IKEA Centres links up with Mutschler for new Algarve retail scheme

Shopping centre specialist IKEA Centres has signed a joint venture agreement with German conglomerate Mutschler Group for the development of a new designer outlet centre in the Algarve region of Portugal.

Located in the municipality of Loulé, the Designer Outlet Algarve forms part of a larger complex of 82,000 m2, which also includes a shopping centre with a fully integrated IKEA store, as well as an
open-air leisure area.

The 110 shops on 17,000 m2 will be developed in two phases with phase I scheduled to open in summer 2017. It will be IKEA Centre's second mall and the fifth IKEA store in Portugal.

'This is great news for us and the outlet centre in Algarve,' commented Richard Vathaire, managing director of IKEA Centres in Portugal.

IKEA Centre is growing strongly across Europe. Earlier this year the property arm of the Swedish conglomerate IKEA unveiled plans to invest up to €2 bn in the development of shopping centres in Russia over the next five to seven years.

The company said it is targeting up to 10 new centres in the country, adding to its existing portfolio of 14 Mega schemes covering 1 million m2. The company opened its first Russian Mega mall in 2002.