Simon continues to build its portfolio of shopping centers
The U.S. malls and shopping centers account for roughly 80% of Simon Property Group’s net operating income. The next biggest portion is its international properties. During the fourth quarter, the company saw a number of important developments.
Key recent developments
- Simon began the relocation of anchor tenant Saks Fifth Avenue (SKS) at the Houston Galleria and the addition of 105,000 square feet of small shop expansion.
- Simon opened up a new 750,000-square-foot open-air shopping center called the Shops at Nanuet, which is a state-of-the-art center located close to New York City in Rockland County. This project was actually a conversion from an old enclosed mall (the Palisades Shopping Center is close by) into a main street outdoor shopping destination. The project was 98% leased at opening.
- Simon expanded the Orlando Premium Outlets—105,000 square feet, 100% leased at opening.
- Simon expanded Johor Premium Outlets in Malaysia—90,000 square feet, 100% leased at opening.
- Simon expanded Walt Whitman Shops in Huntington Station New York—74,000 square feet, 100% leased at opening.
Work continues on four new premium outlets, which are an important growth story for the company.
- Charlotte Premium Outlets, which is slated to open in July of 2014, will be a 400,000-square-foot outlet in which Simon has a 50% stake.
- Twin Cities Premium Outlet in Eagan Minnesota is another large (410,000 square feet) project slated to open this summer. The company has a 35% interest in this project.
- Montreal Premium Outlets, scheduled to open this fall, is a 360,000-square-foot outlet in which Simon holds a 50% interest.
- Vancouver Designer Outlet is scheduled to open in April of 2015. Simon owns 45% of this 242,000-square-foot project.
Finally, Simon completed the acquisition of ownership interest in a number of projects internationally, particularly the McArthurGlen Designer Outlets. McArthurGlen is a leader in upscale European designer outlet centers.
Subsequent to the quarter, Simon also acquired the remaining joint venture interest in Kravco Simon Investments, which buys out the remaining interest and gives Simon 100% ownership of the King of Prussia Mall.