MAPIC: McArthurGlen looks 'seriously' at Turkish market

McArthurGlen, the UK-based outlet centre specialist, is looking 'seriously' at the Turkish market, CEO Gary Bond told PropertyEU at the Mapic retail fair in Cannes this week.

The company recently recruited a new staff member in Istanbul who is doing the preliminary groundwork, Bond said. 'There's nothing definite yet. But I expect we will take a decision early in the new year.'

A strong economy and a young population are sparking renewed interest in Turkey from international real estate investors and developers. 'Turkey would be a natural extension for us,' Bond said, adding that Istanbul would be the first port of call. 'That's where the biggest potential is.'

McArthurGlen announced this week that it is opening a new outlet centre in Vancouver, Canada, next year, its first outside Europe. Bond said the step was a relatively easy one; 'There's an eight-hour time difference with London, but we talk the same language,'

Beyond Turkey and Canada, Bond also sees potential in the Asian market, particularly Hong Kong and China, but added that cultural differences and lack of transparency in Asian markets were obstacles. 'Nevertheless, we need to keep an open mind.'

In the past 20 years, McArthurGlen has added one centre a year on average to its European portfolio. Next year, it will add another 100,000 m² of space but primarily through extensions. Of the 21 centres in the portfolio, 15 are currently undergoing a refurbishment and/or extension, Bond noted.