McArthurGlen to invest 75 million euros in expanding luxury outlet mall in Malaga

The McArthurGlen group, owner, developer and manager of luxury outlet stores in Europe, will invest 75 million euros to expand its outlet mall in Malaga, which will cover 30,000 square metres and become the largest in Spain.

The expansion plan of the shopping mall, which is celebrating its third anniversary after opening in February 2020, will bring its total number of luxury shops and boutiques to 180, thanks to the additional 13,000 square metres of space planned as part of its second phase. 

The company, which presented its balance sheet for last year's results on Tuesday in Malaga, hopes that construction work can begin in 2024, although the project is currently undergoing preliminary urban planning procedures.

According to the company's development director, José Luis Arenas, this second phase is "essential" for the shopping centre to become the leading "outlet" in the country and, although he considers it "premature" to talk about deadlines, he has assured that the company is aiming to complete renovations "as soon as possible."

For his part, the councillor for territorial planning, Raúl López, explained that the initial approval of the project is awaiting planning permission, which the council is confident will be ready in the next few months.

Once started, construction will take between 18 and 20 months, plus a further two to three months for the private construction work to be carried out by each of the firms on the premises, said Arenas.

The construction work alone is expected to generate around 300 direct jobs, while the new facility will employ 200 people when operation begins.

In total, both phases will provide 800 direct jobs and 2,400 indirect jobs, according to McArthurGlen management.

"We are proud to help Malaga and Andalusia in their efforts to de-seasonalise tourism," said Arenas, who pointed out that this project was born with the aim of turning the capital of Malaga into an "international shopping tourism destination."

The expansion plan is backed by the good results that the outlet has recorded in its first three years of operations, despite the fact that its inauguration took place at a "complex" time and just a few weeks after Spain declared a state of alarm due to the spread of Covid-19.

The centre is currently at 99% commercial occupancy and has grown both in terms of turnover - 36% higher than expected in 2022 - and visitors.

Of the 15 million visitors it has received since 2020, almost 7 million of them were from just last year.

Local customers account for between 60% and 65% of total visitors, although it is international customers who account for just over 50% of turnover because of their greater spending power.

Most international customers come from the United Kingdom, the Middle East -mainly the United Arab Emirates- and Morocco, although the company has confirmed a growing interest in American consumers in view of the forthcoming route that United Airlines will operate between Malaga and New York.

The Mayor of Málaga, Francisco de la Torre, who also attended the presentation, pointed out that it is "very interesting" that this "outlet" has become the "most powerful in Spain" and added that the shopping centre's ability to attract this type of tourism is precisely its main advantage and another way to "improve the city's image."