Mall operator Simon Property Group has completed its acquisition of an 80% ownership interest in the Taubman Realty Group Limited Partnership (TRG), which owns, manages and/or leases 26 regional, super-regional and outlet malls in the U.S. and Asia.
Under the terms of the transaction, Simon — through its operating partnership Simon Property Group L.P. — acquired all of Taubman Centers Inc.’s (TCO) common stock for $43 per share in cash. The Taubman family sold approximately one-third of its ownership interest at the transaction price and remains a 20% partner in TRG. The deal is valued at approximately $3.4 billion and was funded with existing liquidity, including proceeds from Simon’s recently completed equity offering.
“We are very pleased to complete this transaction and to add some of the world’s premier retail assets to our portfolio,” said David Simon, Chairman, CEO and President of Simon in a statement. “This investment will enhance the ability of TRG to establish innovative retail environments for consumers and to create new job prospects for the communities in which it operates.”