INDIANAPOLIS — Indianapolis-based Simon Property Group has entered into a definitive agreement to acquire Prime Outlets for approximately $2.32 billion. Prime Outlets' portfolio includes 22 outlet retail centers totaling approximately 8.21 million square feet. Six of the centers are located throughout Florida, and two are located in Maryland. In addition, one center is located in each of the following states: California, Georgia, Illinois, Massachusetts, Michigan, Mississippi, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and Wisconsin. The final center is located in Barceloneta, Puerto Rico. As of June 30, the centers had an average occupancy of 92 percent and generated annual sales of approximately $370 per square foot.
“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,” said David Simon, CEO of Simon Property Group, in a statement. “Following the completion of this transaction, our outlet portfolio will have 63 centers comprising approximately 25 million square feet.”
Under the terms of the agreement, Simon will pay approximately $700 million in equity consideration for the owners' interest in Prime Outlets, consisting of 80 percent cash and 20 percent common stock. UBS Investment Bank and JP Morgan advised Simon in the transaction, while Simon was represented by Fried, Frank, Harris, Shriver & Jacobson LLP.
— Coleman Wood