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Indianapolis-based shopping center giant Simon Property Group announced Monday that it has closed on the remaining 12% interest in Taubman Realty Group Limited Partnership that it didn’t already own.
Simon made the deal in exchange for 5.06M limited partnership units in Simon Property Group.
The nation’s largest shopping center owner, Simon acquired the first 80% of Taubman, known as Taubman Centers Inc., at the end of 2020 for about $2.8 billion.
Taubman Centers, headquartered in Bloomfields Hills, Michigan, was founded in 1950 and grew into one of the largest owners of high-end shopping centers in the United States.
“We are pleased to finalize this transaction, which will be accretive to Simon,” said David Simon, chairman, CEO and president of Simon, in written remarks. “This acquisition aligns with our strategy of owning high-quality assets, unlocking operational synergies and driving further innovation. With full ownership of TRG, we are well-positioned to capitalize on new growth opportunities, increase net operating income and deliver long-term returns to our shareholders.”
The Taubman family, led by Robert and William Taubman, maintained a 20% ownership in their company when Simon made its acquisition in 2020.
Taubman’s portfolio contained some of the most affluent shopping centers in the country, including Beverly Center in Los Angeles, the International Plaza in Tampa, the Mall at Short Hills in New Jersey and The Mall at Millenia in Orlando.
“I would like to thank Bobby and Billy Taubman, and the entire TRG team, for our successful partnership over the last five years,” Simon added.
Simon Property shares were up 0.5% at midday Monday, to $176.64 per share.
“I want to thank everyone at Taubman, present and past, for their contributions to our success over the 75 years since our founding by my father Alfred,” Robert Taubman, chairman and CEO of Taubman Realty Group, said in written comments. “I also want to thank David and his team for our wonderful partnership over the past five years. With this transition, Billy and I look forward to being significant Simon shareholders for many years to come.”
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