Deal will bring ownership to 63 outlet centers with about 25 million square feet of retail space
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Mall operator Simon Property Group (Indianapolis) has agreed to buy Prime Outlets (Baltimore) from the Lightstone Group for $2.24 billion. The move will add 22 shopping centers to Simon’s portfolio.
Under the terms of the agreement, Simon will pay about $700 million for the owners' interests in Prime Outlets, comprising 80 percent of existing cash on hand and 20 percent in Simon common operating partnership units.
The company also owns regional malls and other assets. At the end of the third quarter, Simon owned 387 properties with 262 million square feet, including sites in Europe and China.
“Prime Outlets is an excellent opportunity for Simon as it represents a strong strategic fit for our existing Premium Outlet portfolio and enhances our leadership position in the outlet business,” David E. Simon, an heir of the company’s founding family. “Following the completion of this transaction, our outlet portfolio will have 63 centers comprising approximately 25 million square feet.”
Real estate investment firm Lightstone has struggled during the downtown, also putting its Extended Stay Hotels in bankruptcy. It bought Prime Outlets in 2003.
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