Simon Property strengthens its presence in the shopping centre sector
The American company has acquired the Brickell City Centre shopping centre in Miami. The deal was worth almost US$549 million. The seller was Swire Properties.
Simon previously owned 25% of the complex. This new deal has given the company full control over the property. Simon Property now owns all of the centre’s retail space and parking facilities. Swire Properties plans to use the proceeds to replenish its working capital. In addition, part of the proceeds will go towards developing its American division.
About Brickell City Centre
Brickell City Centre is located in a prestigious area of Miami. The property is part of a multifunctional complex comprising:
– a four-storey retail building;
– 90 retail stores;
– a residential building;
– an office building;
– a hotel.
This deal will strengthen Simon Property’s position in Miami’s commercial real estate market.
Overview of Simon Property Group’s activities
The Simon Property Group is one of the largest real estate investment trusts in the United States. The company’s main areas of activity are investments in shopping centres, outlet centres, and catering establishments. Simon Property Group ranks first in the American market in terms of the number of shopping centres in its portfolio. Simon owns shares in over 232 properties worldwide.
Brothers Melvin and Herbert Simon founded the business in 1960. Their first project was the construction of a shopping centre in Indianapolis. In 1993, the company held an IPO, which is still considered the largest among real estate trusts.
The Simon Property Group has grown through mergers and acquisitions. At the same time, the company can act quite aggressively, as it did with The Retail Property Trust. After a hostile takeover in 1997, the latter became part of the business structure. The transaction amounted to US$1.2 billion at the time. Simon Property also owns a stake in the European shopping centre operator Groupe BEG.
Simon Property entered the outlet market in 2004. Its first deal was the US$3.5 billion acquisition of Chelsea Property. In 2010, the portfolio expanded to include Prime Outlets in Puerto Rico. Meanwhile, the company continued to acquire shopping centres in various countries around the world.
In 2013, the company opened an outlet centre in Ontario, followed by another in Montreal the following year. These operate under the Premium Outlets brand.
Simon Property also conducts transactions in partnership with other companies. In 2016, the trust acquired Aéropostale in partnership with Authentic Brands and GGP. A few years later, Simon teamed up with Authentic Brands again to buy Forever 21.
The company also owns the King of Prussia shopping centre in Pennsylvania. It is the fourth-largest shopping centre in the United States.