Retail real estate giant Simon Property Group Inc. said on Tuesday it will pay about $2.3 billion to buy Prime Outlet’s 22 shopping centers including its third-largest in San Marcos.
The deal bolsters Simon’s formidable Central Texas presence where the Indianapolis-based company already owns Barton Creek Square, Lakeline and Highland malls and the Domain shopping center in Austin and the Ingram Park and Rolling Oaks malls in San Antonio.
The transaction will add about 8.2 million square feet to Simon’s holdings. Simon will pay about $700 million in equity consideration to its owners with 80 percent in cash and 20 percent in stock.
“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,” chief executive officer David Simon said in a written statement.
Simon’s purchase of Prime includes its 672,368 square foot outlet in San Marcos, which is outsized only by a 773,368 square foot outlet center in Orlando and a 681,621 square foot property in Birch Run, Mich.
As of June 30, Prime Outlets’ centers were 92 percent occupied and generated annual sales per square foot of approximately $370, Simon said in its statement.Email | Print