ICSC: International Council of Shopping Centers

Simon to buy Prime Outlets

Simon Property Group will buy all the assets of Prime Outlets Acquisition Co. for $700 million in cash and equity. Including the Prime Outlets debt Simon will assume, the deal is valued at about $2.35 billion.

The deal will give Simon 22 outlet centers in major metropolitan and tourist markets across the U.S. As of June 30, Prime Outlets’ centers were 92 percent occupied and were generating annual sales of about $370 per square foot, according to an announcement by Simon.

Simon will use 80 percent cash and 20 percent Simon common operating partnership units to make the acquisition, and will assume all of Prime’s debt and preferred 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,” said David Simon, the company’s chairman and CEO. “Following the completion of this transaction our outlet portfolio will have 63 centers comprising approximately 25 million square feet.”