Mayor and Governor speak about Opry Mills reopening

The mall will open in spring 2012 but will continue to pursue a lawsuit seeking more insurance proceeds from a consortium of 16 insurers over some $150 million in flood damages, the mall’s owners said Tuesday morning.

SOURCE: The Tennessean

Simon - First Quarter Earnings Release and Conference Call

INDIANAPOLIS, /PRNewswire/ -- Simon Property Group, Inc. (NYSE: SPG) announced today that financial and operational results for the quarter ended March 31, 2011, will be released before the market opens on April 29, 2011. The Company will host its quarterly earnings conference call and an audio webcast on April 29th at 11:00 a.m. Eastern Time.

The live webcast will be available in listen-only mode at www.simon.com (Investors tab), http://www.earnings.com/ and http://www.streetevents.com/. If you are unable to participate during the live webcast, an audio replay will be available beginning at 2:00 p.m. Eastern Time on April 29, 2011, and will be available until 5:00 p.m., May 13, 2011, by dialing 1-888-286-8010 and entering the passcode "25871202." The call will also be archived on http://www.simon.com/, http://www.earnings.com/ and http://www.streetevents.com/ for approximately 90 days.

8 Japanese Outlet Centers rocked by earthquake

By Ilaina Jonas - Reuters


U.S. real estate companies were trying on Monday to assess damage to hotels, warehouses and outlet centers they own in Japan after last week's devastating earthquake and tsunami.

Information was trickling in as the companies, including four real estate investment trusts (REITs), took stock of properties in the prefectures of Miyagi, Iwate, Fukushima, Ibaraki and Chiba, where there was extensive destruction.

U.S. companies Starwood Hotels & Resorts Worldwide Inc, ProLogis, Simon Property Group Incand AMB Property Corp have buildings in those prefectures, according to data provider SNL Financial. Japan, one of the world's wealthiest countries, is a favorite among U.S. real estate investors.

AMB, which owns and operates warehouse and distribution centers, said in a statement that its facility along the coastal area of Sendai in Miyagi had been more severely damaged than most of its properties in the Tokyo area. The company said it had not been able to reach its Sendai facility.

Repairs were being made at some locations, AMB said, adding that it had offered space in its properties to its displaced customers.

AMB, a REIT, said its properties in Japan were insured against tsunami and earthquake damage, and that it expected its insurance deductible to be less than $10 million.

About 60 percent of that is likely to apply to properties owned by the REIT, and the other 40 percent would apply to properties belonging to the funds AMB manages for institutional investors, the company said.

ProLogis, based in Denver, Colorado, has four properties in hard-hit prefectures, according to SNL. The company, which is merging with AMB, did not return calls.

Simon Property owns eight outlet centers in a joint venture with Mitsubishi Estate Co Ltd, the company's spokesman Les Morris said. One of the centers is in Sendai.

Starwood said in a statement that its Westin Sendai hotel had no structural damage, but it would be closed over the next few days because there were no utilities. Its shares closed up 0.8 percent at $58.29.

CBRE Investors, part of global property services company CB Richard Ellis Group Inc, has about $400 million of assets under management in Asia. It was not clear if any of those assets were in Japan, and CB Richard Ellis declined to comment. CB Richard Ellis shares closed down 0.4 percent at $27.19.

LaSalle Investment Management, part of Jones Lang LaSalle Inc, said it was having difficulty getting information about its properties in Japan. The company manages $43 billion of investments around the world. Shares of Jones Lang LaSalle closed down 1.4 percent at $98.54.

AMB shares closed down 2.4 percent at $34.09, and ProLogis shares finished down 2.3 percent, at $15.09. Both underperformed the benchmark MSCI U.S. REIT Index, which was off 1 percent. Simon Property shares closed down 1.2 percent, at $105.63.

Simon Property Group Webcast

David Simon, Chairman and Chief Executive Officer, provided an overview of the Company's business and strategies at the ISI Group 2011 Annual Conference in New York on Tuesday, February 15, 2011 at 10:00 a.m. Eastern Time.

An online replay will be available through March 1, 2011 in the Investors section of the Company's website.

Simon announces year end results

INDIANAPOLIS, Feb. 4, 2011 /PRNewswire-FirstCall/ -- Simon Property Group, Inc. (the "Company" or "Simon") (NYSE: SPG) today reported results for the quarter and year ended December 31, 2010.

Results for the Quarter Ended December 31, 2010
Net income attributable to common stockholders was $217.9 million, or $0.74 per diluted share, in the quarter as compared to $91.5 million, or $0.32 per diluted share, in the prior year period.

Funds from Operations ("FFO") as adjusted was $638.7 million, or $1.80 per diluted share, in the quarter as compared to $573.4 million, or $1.66 per diluted share, in the prior year period. FFO as adjusted excludes the impact of non-cash impairment charges of $0.02 per share in 2010 and $0.26 per share in 2009. FFO was $1.78 per diluted share in 2010 and $1.40 per diluted share in 2009.

Results for the Year Ended December 31, 2010
Net income attributable to common stockholders was $610.4 million, or $2.10 per diluted share, for the year as compared to $283.1 million, or $1.05 per diluted share, in the prior year period.

FFO as adjusted was $2.121 billion, or $6.03 per diluted share, for the year as compared to $1.977 billion, or $6.01 per diluted share, in the prior year period. FFO as adjusted excludes the $1.00 per diluted share loss on extinguishment of debt incurred in connection with two tender offers for outstanding senior notes in 2010 and the impact of non-cash impairment charges of $0.02 per share in 2010 and $0.68 per share in 2009. FFO was $5.01 per diluted share in 2010 and $5.33 per diluted share in 2009.

"We delivered impressive results in an improving, but still challenging environment," said David Simon, Chairman and Chief Executive Officer. "Funds from operations as adjusted per share were $1.80 for the quarter, an increase of 8.4% over the same period one year ago. Our regional mall and Premium Outlet portfolio generated comparable property net operating income growth of 3.4% in the period, fueled by increases in occupancy and sales."


Dividends
Today the Company announced that the Board of Directors approved the declaration of a quarterly common stock dividend of $0.80 per share. This dividend is payable on February 28, 2011 to stockholders of record on February 14, 2011.

The Company also declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred (NYSE: SPGPrJ) Stock of $1.046875 per share, payable on March 31, 2011 to stockholders of record on March 17, 2011. 

Development Activity
On November 11th, the Company opened the second phase of Houston Premium Outlets® in Cypress (Houston), Texas. The 114,000 square-foot expansion brings the property to a total of 536,000 square feet of gross leasable area and 145 stores.

The expansion added 25 new merchants including Saks Fifth Avenue Off 5th, A/X Armani Exchange, American Eagle Outfitters, Chico's, David Yurman, Ed Hardy, Esprit, Haggar Clothing Co., J.Crew, Jockey, Joe's Jeans, Jos. A. Bank, Lacoste, Merrell, Nautica, New York & Company, Nestle Toll House by Chip, Original Penguin, Talbots, Tory Burch, Tumi, White House / Black Market and Wilsons Leather. The Company owns 100% of this center.

Construction continues on the following projects:

• A 70,000 square foot expansion of Las Vegas Outlet Center in Las Vegas, Nevada, expected to open in March of 2011.  The Company owns 100% of this center.
• Paju Premium Outlets, a new 328,000 square foot upscale outlet center with approximately 160 shops, located north of Seoul, South Korea. This will be the Company's second Premium Outlet Center in South Korea and is expected to open in March of 2011.  The Company owns a 50% interest in this project.
• A 52,000 square foot expansion of Tosu Premium Outlets in Fukuoka, Japan, expected to open in July of 2011. The Company owns a 40% interest in this project.
• Johor Premium Outlets, a new 173,000 square foot upscale outlet center located in Johor, Malaysia. The center is located one hour's drive from Singapore and is projected to open in November of 2011.  The Company owns a 50% interest in this project.
• Merrimack Premium Outlets in Merrimack, New Hampshire. This new 380,000 square foot upscale outlet center is located one hour north of metropolitan Boston and is projected to open in the summer of 2012. The Company owns 100% of this center.

For the full press release go to:  PRNewswire

 

Simon schedules 4th quarter conference call.

Simon Property Group, Inc. (NYSE: SPG) announced that financial and operational results for the quarter ended December 31, 2010, will be released before the market opens on February 4, 2011.  The Company will host its quarterly earnings conference call and an audio webcast on February 4th at 11:00 a.m. Eastern Time.

The live webcast will be available in listen-only mode at http://www.simon.com/ (Investors tab), http://www.fulldisclosure.com/ and http://www.streetevents.com/.  If you are unable to participate during the live webcast, an audio replay will be available beginning at 2:00 p.m. Eastern Time on February 4, 2011, and will be available until 5:00 p.m., February 18, 2011, by dialing 1-888-286-8010 and entering the passcode "17445446."  The call will also be archived on http://www.simon.com/, http://www.fulldisclosure.com/ and http://www.streetevents.com/ for approximately 90 days.

Mark Libell 

"Simon Says" - Build more outlet centers

David Simon, CEO Simon Property Group

Simon Property Group chairman and CEO David Simon Thursday told the Economic Club of Indiana that there's demand to build more outlet malls.

"Full price retail, we don't see a lot of demand," he said.

Simon spoke to about 700 people in the Indiana Convention Center 500 Ballroom. He said the company focus is to make its diverse portfolio better.

The company had better-than-expected earnings last quarter. Simon reported a profit of $152.5 million for the second quarter, compared with a loss of $21 million a year ago. Its funds from operations, a key measure for REITs, jumped to $488 million from $313 million in the prior year period.





He also said today:

• An extremely high priority is redeveloping and reinvesting in existing properties.
• The real estate industry is not near as bad as it was in the early 1990s. The world of commercial real estate is clearly stabilized.
• There will not be a double-dip recession. The lack of job growth and inflation are big problems.
• Internet sales are Simon's biggest concern because no sales tax is collected. It makes for what he called an unlevel playing field.

Simon is an extremely private CEO who rarely talks to the media unless on a conference call discussing the financial results of his company --the nation's largest publicly traded real estate investment trust.

In today's speech, Simon did not discuss the ongoing feud between Simon family members over the will of his late billionaire father, Melvin Simon.

SOURCE: Indystar Written by Dana Hunsinger

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

Retail real estate prices fall.

Retail Spaces Lead Drop in U.S. Commercial Property

U.S. commercial real estate prices fell the most in almost a year in June as the economic recovery showed signs of faltering, Moody’s Investors Service said.

The Moody’s/REAL Commercial Property Price Index dropped 4 percent from May, the company said today in a report. The decline was the biggest since July 2009, and pushed the gauge down 0.9 percent from the start of the year.

“We expect property prices to remain choppy for some time as commercial real estate markets and the broader economy continue their slow recovery from the recession,” Moody’s researchers said in the report.

High unemployment and concern over slowing economic growth are hampering a price rebound for offices, apartments, industrial and retail properties, Moody’s said. U.S. gross domestic product expanded at a estimated 2.4 percent annual pace in the second quarter, less than economists forecast and slower than the 3.7 percent rate in the previous three months.

The Moody’s index is down 41 percent from its 2007 peak, having gained 4.2 percent from the seven-year low set in October.

The value of malls and shopping centers fell almost 11 percent in the second quarter, the biggest drop of any commercial property type tracked in the Moody’s index. Apartments and offices values both gained about 4 percent, while industrial properties dropped 2.9 percent.

“In the first quarter, there was probably a little more optimism because we had evidence of retail sales rebounding to a level that was probably a little better than people expected,” said James Sullivan, a Cowen & Co. real estate investment trust analyst. “In the second quarter, things began to slow down.”

Sullivan rates mall operator Simon Property Group Inc. “outperform” and competitors Macerich Co. and Developers Diversified Realty both “neutral.”

Retail sales in the U.S. trailed forecasts and consumer confidence was near an eight-month low, government and university reports said on Aug. 13.

SOURCE: Bloomberg By Brian Louis and David M. Levitt - Aug 19, 2010

Mobil Meets Retail - shopkick joins with Simon

shopkick, the Silicon Valley-based "mobile meets retail" start up, and Simon Brand Ventures  the business-to-consumer arm of Simon Property Group, Inc. today announced a strategic alliance to deliver the shopkick location-based shopping application to more than 100 Simon mall locations across the country in time for the holiday shopping season.

A whole new world will be delivered to the shopper once the free shopkick mobile application is downloaded to the consumers' smart phone. As the shopper walks through the door of a participating retailer that has installed the "shopkick Signal" technology, they will learn of great deals at the store that can stretch their dollar. In addition, just by entering the store, the customer earns a new shopkick currency called "kickbucks" that can be redeemed for rewards or donated to charity.

shopkick will launch within the next few weeks, and start rolling out in the first Simon malls. Simon will promote the shopkick app to consumers at its malls, and deploy shopkick's location technology in key areas of its participating locations. Simon will also help to facilitate the installation of shopkick's technology inside the stores of interested retailers in its malls, to help drive foot traffic and new customers to them.

Simon is the nation's largest shopping mall operator and is working with shopkick to further enhance customers' shopping experiences with rewards and offers – delivered simply for walking into a Simon mall.

"There is simply no more effective partner in the U.S. to reach shoppers at scale than Simon Property Group. Simon and shopkick together will turn the malls into interactive, rewards-filled worlds that enhance shoppers' in-mall experience," said Cyriac Roeding, CEO and co-founder of shopkick. "At the same time, we'll drive foot traffic to the mall's retailers. It's a win-win-win situation, and the future of retail."

shopkick is the first location-based mobile application that promises consumers rewards and offers not just for shopping, but simply for walking into a retail location. Traditional GPS location-based services require shoppers "check in" and are only accurate within one or two blocks or don't work within shopping centers, so aren't viable for mall partners, where hundreds of retailers share a physical space. The patent-pending, low cost "shopkick Signal" technology requires no consumer check in and can guarantee that a user is truly present in the retail location, and is easy to install.

"After a year of due diligence researching location-based apps, we found shopkick offers by far the best way for retailers and brands to communicate directly with shoppers – on the phone, the only interactive device they bring with them to the mall," said Mikael Thygesen, president of SBV, and chief marketing officer of SPG. "Shoppers get a great experience – with high-value rewards, great offers, gaming elements, and more; and retailers get increased traffic and new customers. We're excited to be among the first to deliver this unique benefit. We invite our valued retailer tenants to join the roll-out of this cost-effective solution in their own stores, to drive additional traffic and enhance the overall shopping experience for customers."

How it works

Consumers choose to download the free "shopkick" mobile application for their smart phones. (The "shopkick" app for iPhone will be available in the coming weeks on the iTunes App Store, followed by apps for additional smart phones.) When the "shopkick" app is open on the smart phone, it detects the "shopkick Signal" technology installed in the retail location as the consumer walks through the door, and the shopper instantly receives rewards from shopkick, called "kickbucks." Because the detection occurs on the consumer's phone, the privacy of presence information is completely under the user's control.

Shopkick "kickbucks" can be immediately redeemed for Facebook credits, song downloads, immediate in-store cash-back rewards at shopkick partner stores, magazine subscriptions, even donations to charities. Retailers like Best Buy, Macy's and others that support the "shopkick" app also will deliver to consumers special in-store deals, and/or added bonuses for scanning barcodes of specific products. Similar to the "cost per click" traffic-based online business model, retailers will pay shopkick only for those consumers who actually walk into their stores with the "shopkick" app, recognizing the in-store "shopkick Signal" system.

SOURCE:  PRNEWSWIRE

Simon Property Group sells $900 million of notes

Simon Property Group on Monday sold $900 million of notes, said IFR, a Thomson Reuters
service.

The size of the deal was increased from an originally planned $750 million.

Bank of America Merrill Lynch, Credit Suisse, 

Deutsche Bank, and JP Morgan were the joint bookrunning managers for the
sale.

SOURCE: Reuters

Ground Breaking Held for Johor Premium Outlets

KULAIJAYA, Johor, Malaysia, Aug. 5 /PRNewswire-FirstCall/ -- Chief Minister of Johor, Dato' Haji Abdul Ghani bin Othman officiates the ground breaking ceremony for Johor Premium Outlets, which is a joint venture between the Genting Group  and Simon Property Group (NYSE: SPG)

The ground breaking ceremony marks the start of construction for phase one of Johor Premium Outlets, a 175,000 square-foot upscale outlet shopping center serving the South East Asia market.  

The center will be located at the intersection of the North-South Expressway and the Second Link Expressway and will cover 44 acres of land. With the Bandar Indahpura, Kulai-Second Link Expressway Interchange completed in October next year, Johor Premium Outlets will be highly accessible to all traffic going to and from Johor and Singapore. It is also a short drive from Senai International Airport, about 3 hours’ drive from Kuala Lumpur and about an hour’s drive from the city centre of Singapore.

With a grand opening scheduled in the second half of 2011, Johor Premium Outlets is set to be an exciting shopping destination for brand conscious shoppers in this region. The center will offer a wide selection of designer fashions, sportswear, children’s wear, shoes, fashion accessories, jewelry and more at savings of 25%-65% off regular retail prices every day.

“It will create the first of its kind shopping experience in South East Asia, by offering a variety of designer brands and fashion items at very attractive prices,” said Tan Sri Lim Kok Thay, Chairman and Chief Executive of Genting Berhad and Director and Chief Executive of Genting Plantations Berhad.

The 50:50 joint venture between Genting Berhad’s subsidiary Genting Plantations Berhad and Premium Outlets®, the outlet division of Simon Property Group, combines the valuable expertise of the Genting Group and Simon Property Group in the tourism and retail property sectors.

Johor Premium Outlets will join the Premium Outlets® portfolio of upscale outlet shopping centers, which attracts sophisticated and value-conscious customers from around the globe. 

John R. Klein, CEO of Premium Outlets, the outlet division of Simon Property Group, said, “We are delighted to have had the opportunity to develop this exciting project with the Genting Group.  Johor Premium Outlets is the first Premium Outlet Center^® in Malaysia and will build on the phenomenal success of the Premium Outlets^® portfolio worldwide.”

The total development cost of Johor Premium Outlets is approximately RM 149 million (USD 47 million). With a gross built-up space of approximately 330,000 sq. ft., the center’s first phase will have a gross leasable area of 175,000 sq. ft., comprising 80 to 90 high-quality designer and name brand outlet stores. It will also have approximately 3,000 car parks and 30 bus bays.

Conveniently located between Resorts World Genting to the north and Resorts World Sentosa to the south, Johor Premium Outlets will provide synergies with Genting Plantations Berhad’s existing property operations and the Genting Group’s leisure and hospitality footprint in this region.

“Johor Premium Outlets is an exciting addition to the Genting Group’s operations and also reaffirms our continuous commitment to the development of Iskandar Development Region as well as the country’s tourism industry,” said Tan Sri Lim Kok Thay.

SOURCE: PR Newswire

Simon Property's 2Q results grow by 56 percent

Retail property owner Simon Property Group Inc. said Friday its second-quarter results climbed by 56 percent on improved occupancy and increased property sales.

The results topped Wall Street's expectations.

The real estate investment trust said its funds from operations, or FFO, rose to $487.7 million, or $1.38 a share, in the three months ended June 30, from $313.1 million, or 96 cents a share, in the year-ago period.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.

Net income totaled $152.5 million, compared with a loss of $20.8 million last year.

Quarterly revenue rose 3 percent to $933.6 million from $903.6 million in the previous year. The company said sales for its malls and outlets grew by 4.9 percent year-over-year, and occupancy improved to 93.1 percent from 92.3 percent the year before.

On average, analysts polled by Thomson Reuters expected FFO of $1.34 per share on $917.3 million in revenue.

The REIT also affirmed its full-year FFO guidance between $5.30 and $5.40 per share. Analysts are forecasting 2010 FFO of $5.37 per share.

The company also declared a quarterly dividend of 60 cents per share. It is payable on Aug. 31 to shareholders of record on Aug. 17.

SOURCE: Bloomberg BusinessWeek

CLICK HERE FOR THE COMPLETE GUIDE TO INVESTING IN REITS

Simon Property Cuts Three Centers Out Of Prime Outlets Deal

Simon Property Group Inc. has scaled back its $700 million acquisition of Prime Outlets Inc. by three properties as the U.S. Federal Trade Commission continues to review the deal for antitrust issues.

“There has been a modification to the transaction,” Chief Executive David Simon said during a conference call with investors and analysts Friday. He declined to provide specifics as to why Prime Outlets was maintaining interests in the three properties or how the financials of the deal have changed because of the reduced amount of centers.

The three properties that now will remain with Prime owner Lightstone Group LLC rather than being included in the Simon deal are Prime Outlets in St. Augustine, Fla., and two development sites for outlet centers in Grand Prairie, Texas, and Livermore Valley, Calif.

“Our acquisition of Prime…is still being reviewed by the FTC and we are fully cooperating in that review,” Simon reiterated.

Simon Property announced the acquisition of Prime Outlets in December. Simon Property is already the country’s largest owner of retail properties by number, with 323 malls and other shopping centers. Adding Prime’s 22 centers would cement Simon’s dominance of the resilient outlet-center market, giving it a total of 63 outlet properties. That’s twice as many as No. 2 outlet-center operator Tanger Factory Outlet Centers Inc. (SKT).

Controlling so many properties promises to give Simon an enormous advantage when negotiating leases with retailers. The company would have the clout to do multiple deals, potentially insisting that retailers take space in poorly performing locations as a condition of getting prime real estate in the most popular centers.

“U.S. antitrust authorities have consistently recognized that the retail industry is highly competitive and fragmented,” Simon said.

SOURCE: Gubmint Cheese

Heritage Square mall owners suing Simon over leasing tactics

One of Indiana’s largest privately held developers is suing Simon Property Group Inc., alleging the nation’s largest mall owner abused its “market power” to bully two national retailers into backing out of leases at a lifestyle mall near Mishawaka.

An entity tied to South Bend-based Holladay Properties Inc. alleges in court filings in St. Joseph County that Simon used “anti-competitive tactics” to pry Ann Taylor Loft and Lane Bryant, committed tenants of its Heritage Square lifestyle mall, to open stores in the nearby Simon-owned University Park Mall instead.

Holladay says Simon also tried unsuccessfully to persuade Coldwater Creek and Eddie Bauer to back out of lease deals at the 230,000-square-foot Heritage Square, which broke ground in 2006.

In the case of Eddie Bauer, Holladay claims Simon CEO David Simon personally appealed to the retailer’s CEO to break the Heritage Square deal and open in Simon’s answer to the new Holladay-owned mall: a 100,000-square-foot lifestyle component added in 2008 to University Park Mall.

Simon for years has leveraged its vast power with national retailers to thwart efforts by competitors to open viable shopping centers, claims Holladay, which has developed $2 billion worth of real estate in 15 states, including AmeriPlex-branded business parks in Indianapolis, South Bend, Merrillville and Portage.

“One former Simon employee reported that there was a big meeting of various Simon executives concerning Mishawaka in which they discussed their intent to kill the Heritage Square deal,” Holladay attorneys allege in the lawsuit, filed April 22. “This former Simon employee also indicated that Simon’s tactics regarding Mishawaka is like what happens all over the country.”

Simon Property Group says in court filings that its actions in Mishawaka were nothing more than “the intense cajoling, negotiating, and horse-trading one would expect when landlords compete for tenants in the highly competitive market for commercial real estate.”

The company, which declined to discuss the case with IBJ, has called for a judge to dismiss the lawsuit on the grounds Holladay failed to allege any antitrust violation—“conduct that has no legitimate business purpose, sacrifices short-term profits, and makes sense only because it eliminates competition.”

The Simon filing says the Heritage Square mall has managed to compete “vigorously” with the Simon-owned mall, winning at least four of the most sought-after tenants for lifestyle retail centers: White House Black Market, Coldwater Creek, Eddie Bauer and Aveda.

Simon also points out that Lane Bryant had a store at the Simon-owned mall and was targeted by Holladay—which in doing so “engaged in the same conduct it says Simon engaged in.”

The Indianapolis-based company also points out that any interference with the lease agreements would have occurred more than two years ago, outside the statute of limitations for such allegations.

Women’s wear retailers Ann Taylor Loft and Lane Bryant were poised to open at Heritage Square in 2006 but later backed out and opened in University Park instead.

The Holladay entity alleges Simon used a series of tactics to lure the retailers to its center, including “refusing to renew existing leases or making renewals conditioned upon the tenant not opening stores in a competing development in another market” or “increasing rates or otherwise making the terms of renewals less favorable in retaliation if a tenant opens a store in a competing center.”

Simon’s interference made Heritage Square less attractive to other potential tenants, driving down rents and impairing the property’s value by “tens of millions of dollars,” said Henry J. Price, an attorney for Holladay and partner in Indianapolis-based Price Waicukauski & Riley LLC.

“They’re trying to get retailers—regardless of quality or location of a property—to effectively deal exclusively with Simon, in Simon properties or certainly not in properties that compete with Simon,” Price said.

The lawsuit says an appraisal when construction began in 2006 put the value of Heritage Square at $46.3 million. An updated figure was not available, Price said. Holladay still controls the mall, which is anchored by a Martin’s Super Market, and has not defaulted on any loans, he said. The company declined to provide occupancy figures for the property.

Simon has faced numerous similar lawsuits over the years as it acquired competitors and became the nation’s largest publicly traded real estate company.

A shopping center developer in Texas alleged in a 2006 case, later settled out of court, that Simon intervened to prevent a Macy’s store from taking space in a non-Simon center. A co-developer with Simon in the Forum Shops at Caesars in Las Vegas alleged that Simon reduced the value of a partner’s stake by offering retailers cheaper rent in Las Vegas in exchange for taking less desirable space elsewhere.

The Federal Trade Commission is looking into possible antitrust issues relating to Simon’s pending purchase of 22 Prime Outlets malls. Some of the malls’ tenants are concerned the $2.3 billion deal, announced in December, would give Simon too much power over retailers.

Anti-competitive concerns also helped prevent Simon from succeeding in a $10 billion bid earlier this year to take over its chief U.S. rival, the debt-laden Chicago-based General Growth Properties.

Competing bidders, including Canadian real estate giant Brookfield Asset Management Inc., argued that combining the nation’s top two mall owners would stifle competition among retail landlords and attract attention from federal authorities.

“At a minimum, regulators would likely conduct a full-scale investigation into the threat to competition posed by Simon’s proposal, delaying the transaction for months,” a Brookfield official wrote in an April letter to the General Growth board.

SOURCE: Indianapolis Business Journal

Simon Property Group schedules Q2 earnings release, conference call

Simon Property Group, Inc. (NYSE: SPG) announced that financial and operational results for the quarter ended June 30, 2010, will be released before the market opens on July 30, 2010. The company will host its quarterly earnings conference call and an audio webcast on July 30th at 11:00 a.m. Eastern Time.

The live webcast will be available in listen-only mode at http://www.simon.com/ (Investors tab), http://www.earnings.com/ and http://www.streetevents.com/. For those who are unable to participate during the live webcast, an audio replay will be available beginning at 2:00 p.m. Eastern Time on July 30, 2010, and will be available until 5:00 p.m., August 13, 2010, by dialing 1-888-286-8010 and entering the passcode “75091316.” The call will also be archived on www.simon.com, www.earnings.com and www.streetevents.com for approximately 90 days.

SOURCE: Lafayette OnLine

General Growth To File Chapter 11 Plan On 9 July

General Growth Properties Inc., the US second-largest mall owner, announced it expects to file its Chapter 11 reorganisation plan on or around 9 July, according to a statement. The company also filed a request with a US bankruptcy court to extend its exclusive right to file a plan to 18 October, and to extend its exclusive period to solicit acceptances of any plan of reorganisation through 18 October.

The current exclusivity periods are scheduled to expire on 15 July 2010 and 15 September 2010, respectively. General Growth said the requested extension is part of a strategy to “maximise value upon emergence” from bankruptcy, allowing it to “explore all financing emergence options available to it” and “complement or replace existing financing commitments” according to the statement.

In April 2009, General Growth filed the largest US real estate bankruptcy in history under a $27bn debt load amassed following acquisitions.

 Both Simon Property Group and a group led by Brookfield Asset Management tried to take over General Growth.

But, according to Bloomberg, Simon withdrew its offer in early May and a bankruptcy judge approved a plan for the mall owner to emerge with investments from Brookfield and its partners.

SOURCE: Financier.com

Simon Property Group sets eye on expanding outlet malls

After Simon Property Group gave up trying to buy its biggest mall-owning rival, attention shifted to its $2.3 billion purchase of Prime Retail Outlets.

The owner of Tyrone and Gulf View Square malls, Simon will land the teeming Prime Outlets Ellenton and Orlando in a deal sealing control of 77 of the nation's 217 outlet mall properties.

Antitrust regulators are still combing the deal struck seven months ago, but likely not with the same zeal as when Simon had a second offer out to grab General Growth Properties Inc., too. That $11 billion deal would have added 158 more top-tier malls to Simon's 380-mall trophy case, or a third of all the regional malls in the United States.

But it wasn't a lack of cash or regulators that put the kibosh on Simon. It became evident General Growth didn't want Simon once the management and creditors took a lower offer, said David Simon, chief executive.
Locally the Manatee County outlet would bookend Tampa Bay with Tampa Premium Outlets, a counterpart Simon has planned for years at State Road 52 and Interstate 75 in Pasco County.

The Pasco mall was supposed to open in 2008, but was put off until 2011 by the economic collapse. The inactivity energized the rumor mill about sites closer to town. One had Sierra Properties wooing Simon's Pasco project south as part the sprawling Cypress Creek development at SR 56. Meanwhile, a Washington, D.C., developer appeared with plans for a mall-size hotel-retail development at the Florida State Fairgrounds. That harks back to a mid 1990s attempt to put an outlet mall there to feed off the tourists drawn to the Seminole Hard Rock Casino.

It's too late for Simon to open in 2011. The players will not comment on rumors or when the market might recover enough for another outlet mall.

"We are still very committed to Tampa-St. Pete and think it would be an outstanding market for our Premium Outlets concept," said Michelle Rothstein, a Simon spokeswoman. "We hope to have an announcement in the near future."

Shailendra Group, the Atlanta developer that wants to fit the Premium Outlets mall into part of 950 acres it acquired in 2002, heard the rumors.

"I cannot comment," said Ron Weaver, Shailendra's Tampa attorney. "But we do have the best site."

SOURCE: St. Petersburg Times

Simon, Coke ink marketing agreement

The marketing division of Indianapolis-based Simon Property Group Inc. and The Coca-Cola Co. this week announced a vending, sponsorship, mall advertising and promotion initiative.

Simon Brand Ventures and Coke extended the comprehensive marketing alliance for multiple years, although a news release did not give a specific time period for the agreement. Terms of the agreement were not disclosed.

The effort includes the multi-mall event featuring past "American Idol" finalists.

The agreement will help Coke reach "important demographic groups, especially teens and young adults," said Mikael Thygesen, president of Simon Brand Ventures, in the release.

The nation's largest mall owner and operator in 2009 was the first to feature the Coca-Cola Interactive Video Vender, a touch-screen vending and interactive technology.

SOURCE: Indystar

While this article doesn't specify that this extends into the outlet centers. I took this picture at the Jackson Premium Outlets on Thursday. Clearly Coca-Cola is heavily involved with the events at the Premium Outlets as well.

Mark Libell

Simon Property can't close on Prime

Simon Property Group Inc will not be able to close on its acquisition of Prime Outlets Acquisition Co this month, as U.S. regulators have not yet given the green light, the U.S. mall and outlet center owner's chief executive told Reuters on Thursday.

David Simon said his company was cooperating with the U.S. Federal Trade Commission, which is reviewing Simon's pending acquisition of privately held Prime for antitrust issues.

Simon has been allowed to close on the purchase of one of Prime's 22 outlet centers, the one in Puerto Rico, Simon said at the National Association of Real Estate Investment Trust Investor Forum in Chicago. The closing on the Puerto Rico center was completed last month, he said.

When Simon announced in December it would pay $700 million and assume Prime's debt, it said it expected the $2.33 billion acquisition to close at the end of the first quarter or in the second quarter, which ends on June 30.

At the time, the company said the acquisition would give Simon 63 U.S. high-end outlet centers and would immediately boost earnings. The deal would give Simon new centers that ring major metropolitan markets such as Washington, D.C.; Baltimore; San Antonio; and Orlando, Florida.

SOURCE: Reuters