The retail real estate investment trust (REIT),
Simon Property Group Inc.
), plans to expand and renovate its N.Y.-based iconic premium
outlet center - Woodbury Common Premium Outlets. This comes as
part of the company's strategy to strengthen the tenant base and
further increase traffic volumes at the property.
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Founded in 1985, Woodbury Common Premium Outlets is one of the
most productive shopping destinations in the world, with average
sales of over $1,550 per foot and annual sales of more than $1.3
The property spans 850,000 square feet and is situated in Central
Valley, N.Y. It currently boasts 220 outlet centers comprising
leading global retailing giants such as - Brunello Cucinelli,
Michael Kors Holdings Limited
), Burberry, Jimmy Choo,
), Last Call by Neiman Marcus, Armani, Balenciaga and
Simon Property will invest around $170 million for extensive
expansion and renovation of the aforementioned outlet center.
According to plan, Woodbury Common Premium Outlets will undergo
expansion with the addition of net gross leasable area of 60,000
square feet. Upon completion, the property will have about 240
stores and will stretch more than 900,000 square feet.
Additionally, Simon Property expects to increase employment
through the project. The extension and improvement project will
likely be completed in stages, from 2014-2016.
We view the particular proposition as a strategic venture for the
company and expect it to boost occupancy and tenant sales per
square foot. Of late, Simon Property has been actively
capitalizing on growth opportunities in top markets worldwide,
with a focus on enhancing its Premium Outlets portfolio. Last
month, it opened 2 premium outlets, namely Phoenix Premium
Outlets in Ariz. and Shisui Premium Outlets in Japan, after
completion of their development.
Simon Property currently carries a Zacks Rank #3 (Hold).