Simon Property Group, Inc. (
, a real estate investment trust (REIT), has recently
signed a letter of intent (LOI) with Paragon Outlet
Partners, a commercial real estate development firm, to jointly
develop Charlotte Premium Outlets in Greater Charlotte region.
Both parties would hold a 50% stake in the project which is
expected to open in 2014.
Spanning 400,000 square feet, the center will be located in
Stallings, North Carolina, at Interstate 485 and Idlewild Road.
Following the opening of this center, the residents in this area
will have fashionable merchandise available on trend with various
designers and branded stores at the outlet. The mall is
reportedly expected to house approximately 100 designer and name
brand stores when it is unveiled.
The shopping center is likely to benefit the partners by
capitalizing on the continuous growth opportunities in the
Charlotte market. This type of upscale development is expected
to bring high-quality retail options for consumers and a
positive impact to the marketplace. Simon Property already has a
major presence in this market with the South Park and Concord
Headquartered in Indianapolis, Indiana, Simon Property is the
largest publicly traded retail real estate company in North
America, engaged in acquiring, owning and leasing a diverse
portfolio of shopping malls. Furthermore, the company's
international presence gives it a more sustainable long-term
growth story compared to its domestically focused peers. The
geographic and product diversity of the company insulates it from
market volatility to a great extent and provides a steady source
Simon Property currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We are also maintaining
our long-term Outperform recommendation on the stock. One of its
holds a Zacks #2 Rank
Note: LOI is an agreement that describes in detail a
corporation's action to execute a corporate action.
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