Simon buys back nine Federated stores

Federated Department Stores plans to sell nine department stores to Simon Property Group for an undisclosed sum. The nine stores, all anchors at Simon malls, are among 80 duplicate locations Federated previously announced for divestiture as a result of its acquisition of May Department Stores. The deal, which includes stores in Indiana, Massachusetts, New Hampshire and Pennsylvania, will close in July.

Simon executives have said the firm plans to convert many if not all of the stores into multi-tenant lifestyle components.

Federated said proceeds from this transaction will be included in the $400 million to $500 million of after-tax proceeds expected from the sale of duplicate stores nationwide, as previously announced.

Compiled by the staff of Shopping Centers Today. © May 02, 2006 International Council of Shopping Centers.