Owner of Stamford mall being acquired for $3.6 billion by Simon Property Group
Simon Property Group Inc. is acquiring an 80% stake in Taubman Centers Inc. in a deal valued at $3.6 billion.
Taubman”™s properties include the Stamford Town Center mall, which it announced was being put up for sale in October. What impact the Simon deal will have on that sale is unclear.
Earlier this month, Stamford Director of Economic Development Thomas Madden said that selling the 853,000-square-foot mall at 100 Greyrock Place requires signoffs from five parties: Taubman; Macy”™s, which owns its pad site; Reckson, which also owns part of the site; the Stamford Urban Redevelopment Commission, which owns Center Drive, the mall”™s ramps and helix structure; and the city of Stamford, which owns the land under the site”™s parking structure.
The mall had an 83% occupancy as of mid-January, he said, adding that the city “is pretty much ready for a new owner to come in and present.”
Under terms of the Simon deal, the Taubman family will sell approximately one-third of its ownership interest at the transaction price and remain a 20% partner in the company.
Taubman owns, manages and/or leases 26 “super-regional shopping centers” in the U.S. and Asia, including Westfarms in West Hartford and The Mall at Short Hills (New Jersey), consisting of approximately 25 million feet of gross leasable area. It will continue to be managed by its existing executive team under the leadership of Taubman Chairman, President and CEO Robert S. Taubman, in partnership with Simon.
Simon’s Connecticut properties also include Clinton Crossing Premium Outlets in Clinton, while its New York properties include The Westchester in White Plains; The Shops at Nanuet; Smith Haven Mall in Lake Grove; Walt Whitman Shops in Huntington Station; and Woodbury Common Premium Outlets in Central Valley.
The parties have agreed to work together to implement best practices to achieve operational efficiencies and will eliminate Taubman’s public company costs immediately following closing.
Simon Chairman of the Board, CEO and President David Simon said the deal will enhance Taubman”™s ability “to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities.”
The transaction, which is subject to customary closing conditions, is expected to close in mid-2020.