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SIMON STREAMLINES OWNERSHIP ENTITY

Shareholders of Simon Property Group, Indianapolis, approved the developer’s merger with subsidiary SPG Properties in late June. SPG Properties was formerly the Simon DeBartolo Group, and holds a 48.3% ownership interest in Simon Property Group. The company completed the merger to streamline Simon’s structure through the elimination of SPG Properties as a separate entity. The merger was effective as of July 1. Under its terms, each share of the two series of SPG Properties’ preferred stock will be converted into one of two new series of Simon preferred stock with identical powers and rights.

GGP PROJECT GETS GREEN LIGHT

The Elk Grove (Calif.) City Council approved Chicago-based General Growth Properties’ proposed $500 million, 1.3 million-square-foot Lent Ranch Marketplace in late June. The Council’s approval overrides Sacramento County’s earlier rejection of the mall. The Robinsons-May department store chain, Macy’s, Dillard’s and Gottschalks have all signed letters of intent to anchor the mall. Construction is slated to begin in early 2003 with the first phase of the project opening in 2004. Sacramento County had concluded that the mall was too large for its proposed site, but the city council approved it because of the sales tax revenue the center will generate.

GAP REVISES EXPANSION PLANS, INITIATES FIRST-EVER MASS LAYOFF

Gap Inc., San Francisco, which has suffered from slow sales in all its divisions for more than a year, reduced its expansion plans for 2002 and 2003 and announced the first major round of job cuts in the company’s 30-year history. Gap revised its planned annual square footage growth for both 2002 and 2003 to 10%, down from its original goal of 15%. Gap said it will eliminate between 500 and 700 positions from its staff of more than 10,000 corporate employees worldwide. The cuts will take place as layoffs, through attrition and by eliminating open positions. Sales clerks will not be affected by the cuts.

KEDS OPENING LINE OF STORES

Shoemaker Keds Corp., Lexington, Mass., is opening six Keds Stores this year, its first attempt at selling its own products. The stores will be 1,200-square-foot units that will focus on women’s shoes. Three will have only women’s shoes; the other three will sell women’s and children’s shoes. The first two stores opened in June near Atlanta at the North Point Mall, Alpharetta, Ga., and Town Center at Cobb, Kennesaw, Ga.

KRAVCO WINS NEWARK REVITALIZATION JOB

Kravco Co., King of Prussia, Pa., as part of a consortium called Parkside Associates, beat out more than a dozen other proposals to complete a $160 million revitalization of downtown Newark, N.J. The New Newark Foundation picked the Kravco team in late June. The development will be a combination of 190,000 square feet of retail and 549 luxury apartments and will include the renovation of the former Hahnes Department Store and the Griffith Piano Building, both of which have been vacant for about 25 years. The team will break ground in spring 2002 and open the first phase in 2003. Phase II construction will begin later that year.

 

 

 

 

 

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