Simon Property Group, Inc
. (
SPG
), a real estate investment trust (REIT), has recently
formed a joint venture with
Tanger Factory Outlet Centers Inc
, (
SKT)
to develop two upscale outlet centers in Charlotte, North
Carolina and Columbus, Ohio. Both parties would hold a 50% stake
in the two centers which are expected to open in 2014.
Spanning 350,000 square feet, the center in Charlotte will be
branded as Charlotte Premium Outlets. Located at the interchange
of two major thoroughfares of the city, the center will provide
the residents in the area with fashionable, trendy merchandise
from various designers and branded stores. The mall is expected
to house approximately 90 designer and name-brand stores when it
is fully unveiled. Tanger will be the site developer and
supervisor, while Simon Property will handle the management and
marketing for the project.
The center in Columbus will be branded as Tanger Outlets and will
aggregate approximately 350,000 square feet. It will be located
on I-71, 20 miles north of downtown Columbus. The outlet centers
are likely to benefit both partners by capitalizing on the
continuous growth opportunities in the Charlotte and Columbus
markets. These types of upscale developments are expected to
bring high-quality retail options for consumers and have a
positive impact on the marketplace. Both new projects are also
expected to create significant employment opportunities with
approximately 300 construction jobs at each site and over 900
full and part-time retail management and sales jobs once the
centers are open.
Headquartered in Indianapolis, Indiana, Simon Property is the
largest publicly traded retail real estate company in North
America engaged in the 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 income.
Simon Property currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating. We maintain our
long-term Outperform recommendation on the stock. One of its
competitors,
The Macerich Company
(
MAC
) holds a Zacks #3 Rank, which translates into a short term Hold
rating.
MACERICH CO (MAC): Free Stock Analysis Report
TANGER FACT OUT (SKT): Free Stock Analysis
Report
SIMON PROPERTY (SPG): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research