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|Simon Property Group Purchases 50% Stake in San Diego's Fashion Valley Mall from Lend Lease's Prime Property Fund|
|NEW YORK, and INDIANAPOLIS, Oct 4, 2001 /PRNewswire via COMTEX/ -- Lend Lease
Real Estate Investments, on behalf of its Prime Property Fund, has sold a 50
percent stake in San Diego's Fashion Valley Mall to Simon Property Group, Inc.
(NYSE: SPG). Simon has also assumed management responsibilities for the mall.
Concurrent with the closing, which occurred on October 1, 2001, the partnership
secured a $200 million, 7 year mortgage from Lehman Brothers that bears interest
at a fixed rate of 6.50%.
Fashion Valley has dominated the San Diego-area retail scene since it opened in 1969. Located in the Mission Valley area, this 1.7 million square foot open-air, super-regional mall is anchored by Neiman Marcus, Nordstrom, Saks Fifth Avenue, Macy's, Robinsons-May and JCPenney. One of the nation's most successful retail centers, Fashion Valley is 99% leased and generates small shop sales in excess of $575 per square foot. Total sales generated by the mall exceed $650 million annually.
Lend Lease's Prime Property Fund has held an ownership stake in Fashion Valley since 1985. In 1997, the mall was renovated and expanded by 280,000 square feet to its current size.
Gene Conway, president of Lend Lease's Real Estate Advisors group and co- portfolio manager of Prime Property Fund, said, "This transaction benefits Prime Property Fund investors in several ways. The Fund retains a major stake in one of the country's premier shopping centers, while reconfiguring its portfolio. Additionally, our investment will benefit from the management of Simon Property Group which has already been demonstrated through our successful partnership with Simon in Miami's Dadeland Mall."
"Fashion Valley is one of the most productive centers in California, making this acquisition a perfect fit within Simon's strategy to own and manage highly productive, market-dominant malls," said Richard S. Sokolov, president and chief operating officer of Simon Property Group. "The transaction will be immediately accretive to earnings and expands Simon's presence in the California market. One of the hallmarks of the Simon organization is the importance of long-term relationships, and based upon our positive experience with Lend Lease at Dadeland Mall, we are very pleased to expand our business relationship with this top tier asset."
Lend Lease Real Estate Investments is one of the largest real estate investment managers in the world and a leading U.S. real estate advisor to pension funds. The company has $36 billion in real estate and commercial mortgages under management for institutional and private clients in the U.S.
On a worldwide basis the Lend Lease Group is an integrated real estate funds management and services business comprising funds management, project management and construction and property development. In real estate funds management, Lend Lease provides equity and debt origination and management, in public and private markets, on behalf of clients globally. Lend Lease provides project management and construction services in almost 40 countries, usually on a fee for service basis, for a blue chip client base with a high level of repeat business. In property development, Lend Lease has expertise in commercial, retail and complex urban mixed use developments, with a strong retail focus, in Europe, Asia, Australia and the U.S., utilizing primarily third party capital.
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a self-administered and self-managed real estate investment trust which, through its subsidiary partnerships, is engaged in the ownership, development, management, leasing, acquisition and expansion of income-producing properties, primarily regional malls and community shopping centers. It currently owns or has an interest in 251 properties containing an aggregate of 187 million square feet of gross leasable area in 36 states and six assets in Europe and Canada. Together with its affiliated management company, Simon owns or manages approximately 191 million square feet of gross leasable area in retail and mixed-use properties. Shares of Simon Property Group, Inc. are paired with beneficial interests in shares of stock of SPG Realty Consultants, Inc. Additional Simon Property Group information is available at www.shopsimon.com .
MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X31313697SOURCE Simon Property Group
CONTACT: Mary Beth Lally of Lend Lease Real Estate Investments, +1-212-554-1613; or Investors, Shelly Doran, +1-317-685-7330, or Media, Billie Scott, +1-317-263-7148, both of Simon Property Group, Inc. URL: http://www.shopsimon.com http://www.prnewswire.com
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