FTC tell Simon to sell outlets and eliminate radius restrictions

The Federal Trade Commission is requiring Simon Property Group Inc. to sell one of its southwest Ohio outlet centers as part of a settlement designed to preserve outlet center competition.

Simon Property Group (NYSE: SPG) will sell either its Cincinnati Premium Outlet center in Monroe or its Prime Outlets-Jeffersonville outlet center as a result of the FTC working to resolve competition concerns raised after Simon purchased Prime Outlets. Cincinnati Premium Outlets, which opened last August, is operated by Premium Outlets, a division of Simon.



Last December, Indianapolis-headquartered Simon Property Group signed an agreement to acquire all of Prime’s 22 outlet centers for approximately $2.3 billion.

In addition, Simon has agreed to remove radius restrictions for tenants with stores in its outlet malls serving the Chicago and Orlando markets. This will allow competing centers or outlet mall developers looking to enter those markets to sign leases with tenants that otherwise would be prohibited from doing so because of radius restrictions.

Without the settlement provisions, Simon’s acquisition of Prime would have illegally reduced outlet center competition by eliminating direct competition in southwest Ohio, Chicago and Orlando; giving Simon a monopoly in outlet centers serving the southwest Ohio market; and allowing Simon to prevent or limit new outlet center entry and competition in the Chicago and Orlando markets. 

Les Morris, director of corporate public relations for Simon Property Group, declined to comment.

The commission vote approving the complaint and proposed consent order was 5-0. It will be subject to public comment for 30 days, until Dec. 10. Then, the commission will decide whether to make it final.

SOURCE: Business Courier

Simon Property Group Closes Deal On Prime Outlets

INDIANAPOLIS, Aug. 30 /PRNewswire-FirstCall/ -- Simon Property Group, Inc. (NYSE: SPG) ("Simon") today announced that it has completed its transaction with Prime Outlets Acquisition Company and certain of its affiliated entities ("Prime"), and that, in connection with the transaction, Simon has signed a proposed Consent Agreement with the Staff of the Federal Trade Commission ("FTC"). The Consent Agreement will now be forwarded to the Commission for its review and approval.

The Prime transaction adds 21 outlet center properties to Simon's portfolio, including Prime's Barceloneta outlet center in Puerto Rico which Simon acquired in May of this year. Simon previously announced that it had amended its agreement so that the owners of Prime will retain Prime Outlets-Saint Augustine as well as the Livermore and Grand Prairie development projects.

The completed transaction reflecting the amended agreement and including the Barceloneta outlet center is valued at approximately $2.3 billion, including the assumption of approximately $1.55 billion of Prime's existing indebtedness and preferred stock. Simon paid equity consideration to Prime's owners, generally comprised of 80% cash and 20% in SPG common operating partnership units.

David Simon, SPG Chairman and Chief Executive Officer, stated, "The Prime Outlets portfolio is an excellent strategic fit and presents a compelling opportunity for Simon to benefit from shoppers' increased demand for discounted brand-name merchandise. We believe that our strong track record of operational excellence, financial resources, and history of successful acquisitions, make us well positioned to improve the performance of these assets for the benefit of tenants, retailers and consumers."

SOURCE: PR Newswire

City sets special routes to malls for tax free weekend

San Marcos — Traffic routes to the outlet malls in San Marcos will be changed slightly this weekend to accommodate the expected large crowds at Prime Outlets and Tanger Outlet Center for back-to-school shopping.

Northbound traffic on I-35 will exit at Centerpoint Road (exit 200). Exit 201 northbound at McCarty Lane will be closed from Friday at 12 noon to Sunday at 6 p.m.

Southbound traffic will exit at McCarty Lane (exit 201). Exit 200 at Centerpoint southbound will be closed during the weekend.

Signage will direct motorists on both sides of I-35.

San Marcos Police and San Marcos Fire Department will have additional officers and firefighters at the malls Friday through Sunday for public safety and first aid.

SOURCE: San Marcos Daily Record

Prime Retail to lay off 44 workers

Layoffs at Prime's Inner Harbor headquarters to occur by Sept. 5

Prime Retail Management, an arm of the Baltimore-based owner of outlet shopping centers, will lay off 44 workers at its downtown Baltimore office by Sept. 5, the company said in a notice filed with Maryland's labor department.

The notice to the state's Department of Labor, Licensing and Regulation did not indicate whether or not the East Redwood Street office would be closed.

Prime Outlets Acquisition Co., which owns 22 outlet malls around the country including Prime Outlets Hagerstown and Prime Outlets Queenstown, is to be acquired in a $2.33 billion deal by Simon Property Group, the nation's largest owner of malls. Representatives of Prime's current owner, Lightstone Group, declined comment on the Baltimore layoffs. A spokesman for Simon also declined to comment.

SOURCE: By Lorraine Mirabella, The Baltimore Sun

Prime Outlets Grand Prairie shopping center is on slow track

Prime Outlets' proposed shopping center in Grand Prairie first had to wait out a recession. Now, it's caught up in a pending merger.

While the project has no opening date, it's still alive, according to developers and city officials.

Prime owns land in Grand Prairie where it expected by now to have a 450,000-square-foot outlet center open with commitments from Neiman Marcus Last Call and Saks Off 5th.

Fall 2009 was the first target date for the center planned for the north side of Interstate 20, between State Highway 360 and Great Southwest Parkway.

It was pushed back to May 2011, and now it's in limbo again. "Maybe fall 2011," said Bob O'Neal, Grand Prairie's economic development director. "It's a one-year construction schedule. All the engineering is ready to go. We did the intersection improvements they needed."

Prime must meet requirements of a Federal Trade Commission inquiry of its pending merger. Simon Property Group Inc., the largest U.S. shopping mall owner, reached an agreement in December to buy Baltimore-based Prime Outlets from Lightstone Group for $2.33 billion, including debt.

Indianapolis-based Simon is cooperating with the FTC, which is putting the merger through antitrust scrutiny.
Simon had also bid on its largest competitor, Chicago-based General Growth Properties. Earlier this month, Simon chairman and CEO David Simon said the company had "moved on" and had no plans to make another bid for General Growth, which is reorganizing in bankruptcy.

Simon gains 22 retail outlet centers nationally if it completes the merger with Prime.

In recent years, Simon has acquired two other major mall operators, Mills and Chelsea. Simon also is the largest operator of traditional regional malls, including Firewheel Town Center in Garland, Irving Mall and the Galleria in Houston.

In Texas, Simon owns one of two major centers in San Marcos; four Premium Outlets, including one in Allen, and Mills malls in Grapevine and Katy. Once the deal is completed, Simon will have 63 outlet centers nationally.

Another proposed outlet center similar to Grand Prairie also has been delayed. Prime has plans to build in Livermore Valley, east of San Francisco.

Simon spokesman Les Morris said he couldn't comment on Prime projects since the merger was still pending.

Prime is actively leasing both projects, looking for additional retail and restaurant prospects, said a spokeswoman for Prime.

In May, Tanger Factory Outlet Centers Inc. canceled plans for a similar shopping center in Irving.

"We're still positive and anxious," Grand Prairie's O'Neal said.

"Prime has a healthy list of tenants." A year ago, Prime had lease commitments for 50 percent of the space from Michael Kors , Dooney and Bourke, Hugo Boss, Brooks Brothers , Tommy Hilfiger and others. In March, it said Cole Haan and Esprit were among additional retailers signing leases this year.

SOURCE: MARIA HALKIAS / The Dallas Morning News

Travelocity Gnome Comes to San Marcos

Prime Outlets announced yesterday its Prime Outlets – San Marcos location, has partnered with Travelocity®, one of the largest travel companies in the world, to offer Texas-bound travelers an exclusive shopping package at the 750,000 square foot shopping destination.

When customers complete Travelocity's online booking process to area gateway cities San Antonio, Dallas, Forth Worth or Austin, the opportunity to purchase a Prime Outlets – San Marcos shopping package that includes a $50 Prime Outlets gift card, spa package including L'Occitane en Provence and Bath & Body Works products, signature tote, Prime Outlets – San Marcos VIP Coupon Book worth hundreds of dollars in additional savings, and outlet center map will appear for the traveler's consideration for the purchase of $72.00.

"Travelocity is one of the most visited travel Web sites in the world and we are honored to be the company's only featured outlet shopping destination for travelers searching and confirming visits to these nearby Texas metro regions," said Prime Outlets Senior Vice President of Marketing Karen E. Fluharty.

Source: The Street

Champagne, Shopping and Sweets

Prime Outlets will welcome more than 2,500 International POW WOW attendees as it hosts Champagne, Shopping and Sweets, a private shopping event at Prime Outlets - Orlando, Tuesday, May 18 beginning at 6:45 p.m.


The shopping celebration at the largest outlet shopping center in the southern U.S., and second largest in the nation, will feature one-night-only merchant discounts, entertainment, refreshments, models showcasing the latest designer travel fashions, as well as the opportunity to meet noted fashion expert Lilliana Vazquez, prominent stylist known for hosting "Style Check," "AMC Date Night," "That's So New York" and her web site The Cheap Chica's Guide to Style.  Event guests will also have the chance to win a $500 Saks Fifth Avenue OFF 5TH Shopping Spree with the stylist, or a deluxe Samsonsite luggage set.

"We are excited to welcome the international tourism community and introduce them to Prime Outlets - Orlando," said Prime Outlets Senior Vice President of Marketing Karen E. Fluharty. "Our exclusive evening event will be a must-attend at this year's conference where guests can indulge themselves with a evening of designer outlet shopping from our collection of more than 175 designer and brand-name merchants."

Prime Outlets - Orlando representatives will present a complimentary "swag bag" to their first 500 guests.

Source: Focus on Travel News

Simon Property: Federal Trade Commission Reviewing Prime Outlets Acquisition

Simon Property Group Inc.'s (SPG) chief executive said Friday the Federal Trade Commission is reviewing the company's $700 million acquisition of Prime Outlets Inc. announced in December.


"We have met with the FTC, and are fully cooperating in that review," said David Simon in a conference call with analysts and investors.

For the full article by A.D. Pruitt, Of DOW JONES NEWSWIRES