IBJNews

Simon purchases Long Island land from rival Taubman

Back to TopCommentsE-mailPrintBookmark and Share

Simon Property Group Inc., the world’s largest mall owner, bought a land parcel on New York’s Long Island from rival shopping-center landlord Taubman Centers Inc., which failed to develop the property.

The 39-acre plot near the Long Island Expressway in Syosset had been slated for the Mall at Oyster Bay, according to a statement by Bloomfield Hills, Mich.- based Taubman. Simon also purchased the company’s 50-percent stake in Arizona Mills, a shopping center in Tempe, Arizona, built in 1997. Taubman received $230 million in Simon Property shares and $60 million in cash for the two transactions.

The Long Island property is “great real estate,” David Simon, Indianapolis-based Simon Property’s chairman and CEO said Friday on the company’s fourth-quarter earnings conference call. “We’re going to work with the residents to come up with a development plan.”

The real estate investment trust is focused on redeveloping its top regional malls, opening outlet centers and investing overseas to boost growth, and plans to spin off 44 of its smaller malls and its strip center business into a separate publicly traded company.

Simon said Friday that fourth-quarter funds from operations rose 8.1 percent from a year earlier as occupancies at its U.S. malls and outlet stores climbed.

Taubman spent about 20 years attempting to build a mall on the Oyster Bay site, Alexander Goldfarb, an analyst at Sandler O’Neill & Partners LP, wrote in a note to clients Friday.

“Despite our best efforts and continuing enthusiasm for the opportunity, it became apparent that we were not going to be able to move forward anytime soon,” Robert Taubman, chairman and CEO of Taubman Centers, said in the statement.

Simon more than a decade ago dropped an unsolicited takeover offer for Taubman after Michigan enacted a law allowing the Taubman family to block the effort. Last year, the companies opened competing outlet malls in a suburb of St. Louis.

“Even though we obviously have had issues over the years with Taubman, we’ve always had what I’d call a good professional relationship,” David Simon said on the call. “The dust has settled from several years ago.”

Simon also this month bought its joint-venture partners’ remaining interest in 10 properties including King of Prussia Mall in Pennsylvania. The company now owns 100 percent of that property.

Shares of Simon Property rose 1.2 percent Friday, to $154.84 per share, while Taubman gained 1.4 percent to $65.02.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I think the poster was being sarcastic and only posting or making fun of what is usually posted on here about anything being built in BR or d'town for that matter.

  2. Great news IRL fans: TURBO the IMS sanctioned movie about slugs running the Indy 500 has caught the Securities and Exchange Commission because Dreamworks had to take a $132MILLION write down...because the movie was such a flop. See, the Indy/IMS magic soiled another pair of drawers. Bwahahahahahaha! How's CARTOWN doing? HAHAHAHA...Indy is for losers.

  3. So disappointed in WIBC. This is the last straw to lose a good local morning program. I used to be able to rely on WIBC to give me good local information, news, weather and traffic on my 45 minute commute.Two incidents when I needed local, accurate information regarding severe weather were the first signs I could not now rely on WIBC. I work weekend 12 hour nights for a downtown hospital. This past winter when we had the worst snowfall in my 50 years of life, I came home on a Sunday morning, went to sleep (because I was to go back in Sunday night for another 12 hour shift), and woke up around 1 p.m. to a house with no electricity. I keep an old battery powered radio around and turned on WIBC to see what was going on with the winter storm and the roads and the power outage. Sigh. Only policital stuff. Not even a break in to update on the winter storm warning. The second weather incident occurred when I was driving home during a severe thunderstorm a few months ago. I had already gotten a call from my husband that a tornado warning was just southwest of where I had been. I turned to WIBC to find out what direction the storm was headed so I could figure out a route home, only to find Rush on the air, and again, no breaking away from this stupidity to give me information. Thank God for my phone, which gave me the warning that I was driving in an area where a tornado was seen. Thanks for nothing WIBC. Good luck to you, Steve! We need more of you and not the politics of hatred that WIBC wants to shove at us. Good thing I have Satellite radio.

  4. I read the retail roundup article and tried Burritos and Beers tonight. I'm glad I did, for the food was great. Fresh authentic Mexican food. Great seasoning on the carne asada. A must try!!! Thanks for sharing.

  5. John, unfortunately CTRWD wants to put the tank(s) right next to a nature preserve and at the southern entrance to Carmel off of Keystone. Not exactly the kind of message you want to send to residents and visitors (come see our tanks as you enter our city and we build stuff in nature preserves...

ADVERTISEMENT