Simon Property Group, Inc.
), a real estate investment trust (REIT), has recently acquired
two upscale outlet centers in Grand Prairie, Texas and Livermore,
California from an unnamed seller for an undisclosed amount.
Post-acquisition, Simon Property will handle the managerial
responsibilities with 100% ownership in these two centers.
Spanning 417,000 square feet, the acquired property in Texas will
be branded as Grand Prairie Premium Outlets. Located in the
Dallas-Fort Worth metropolitan area, the center provides
residents with fashionable and trendy merchandise from various
designers and branded stores. The mall opened in August 2012 and
is home to over 100 designer and name-brand stores.
The center in California will be branded as Livermore Valley
Premium Outlets. The mall aggregates approximately 512,000 square
feet and is located in the affluent East Bay area of San
Francisco. Opened in November 2012, the outlet center is
presently 100% leased and houses about 130 leading designer and
With the acquisitions, Simon Property aims to capitalize on
the strong growth opportunities in the Texas and California
markets. The upscale outlet centers are expected to bring
high-quality retail options for consumers and have a positive
impact on the marketplace. Consequently, the company expects the
transaction to be accretive to earnings.
Headquartered in Indianapolis, Indiana, Simon Property is the
largest publicly traded retail real estate company in North
America engaged in acquisition, ownership and lease of a diverse
portfolio of shopping malls. The company's international
presence gives it a more sustainable long-term growth story
compared to its domestic-focused peers. The geographic and
product diversity of the company insulates it from market
volatility to a great extent and provides a steady source of
Simon Property currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We maintain our
long-term Outperform recommendation on the stock. One of its
The Macerich Company
) also holds a Zacks #3 Rank.
MACERICH CO (MAC): Free Stock Analysis Report
SIMON PROPERTY (SPG): Free Stock Analysis
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