US Reit Prime Retail is in talks with Dutch developer Multi Vastgoed to develop and operate factory outlet centres in Holland, the UK, Portugal, Spain, France, Germany, Belgium, Italy, Greece and Switzerland.
It has already decided to develop the first one with Multi Vastgoed at Stadspark Oranje Nassau in Heerlen, south Netherlands. It comprises a FOC, a leisure and entertainment centre, including a multiplex, and up to 70,000m2 of offices.
Prime Retail announced its plan to start developing in Europe last October. It teamed up with property investment company The Athena Group in a $500m drive to roll out FOCs across Europe over the next five years.
Since then its ambitions have grown and it is looking at leisure and entertainment centres and thinking about combining them with FOCs.
Prime Retail will be the first US Reit to take a direct role in the European FOC market. Chelsea GCA, another US Reit, is involved passively as one of the backers of Value Retail.
Prime claims to be the world’s largest developer, owner and operator of FOCs, although it has had no experience in Europe.It owns around 25% of all outlet space owned by US Reits, which comprises1.37m m2 in 51 centres.
