Simon Property Group Completes Acquisition of Chelsea Property Group
INDIANAPOLIS, Oct. 14 /PRNewswire-FirstCall/ -- Simon Property Group, Inc.
(NYSE: SPG) ("Simon") announced today the completion of its acquisition of
Chelsea Property Group, Inc. ("Chelsea").
Chelsea common shareholders will receive merger consideration of $36.00 in
cash; 0.2936 of a share of Simon common stock; and 0.3000 of a share of Simon
6% Series I convertible perpetual preferred stock for each share of Chelsea
common stock. This is a taxable transaction to Chelsea common shareholders.
In connection with the merger transaction, holders of limited partnership
common units of CPG Partners, L.P., the operating partnership subsidiary of
Chelsea, will exchange their units for common and convertible preferred units
of the Simon operating partnership, Simon Property Group, L.P.
Chelsea will be managed as a division of SPG, operating out of its current
headquarters in Roseland, New Jersey, with David Bloom and the Chelsea
management team continuing in their current roles. David Bloom has been
appointed as an Advisory Director of the Simon Property Group Board of
Chelsea Property Group is the leading owner, developer and manager of
Premium Outlet(R) centers in the U.S. and Asia. Its portfolio includes 36
Premium Outlet centers (32 in the U.S. and 4 in Japan) located in major
metropolitan markets such as New York, Los Angeles and Boston, and tourist
destinations such as Orlando, Las Vegas and Palm Springs. The 32 domestic
Premium Outlet centers are 98% occupied and generate sales per square foot of
approximately $400. Chelsea's four Premium Outlet centers in Japan, located
near Tokyo, Osaka and Fukuoka, are fully leased and generate average sales of
more than $800 per square foot.
David Simon, chief executive officer of Simon Property Group, stated "We
are very pleased with the strategic acquisition of Chelsea and believe this
transaction will be a strong driver of growth for us in the coming years.
Chelsea is the preeminent brand in the premium outlet industry as a result of
their focus on highly-productive, high-quality retail real estate, and their
addition to our organization will only strengthen the Simon franchise."
David Bloom, chief executive officer of Chelsea, said "We are very pleased
that our shareholders voted in favor of the transaction. While Chelsea will
no longer be a public company, we look forward to contributing to Simon's
growth. Chelsea could not be part of a better organization."
Simon was advised in this transaction by UBS Investment Bank and Morgan
Stanley. Chelsea was advised by Merrill Lynch & Co.
Statements in this release that are not historical may be deemed forward-
looking statements within the meaning of the federal securities laws.
Although Simon believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, it can give no assurance that
its expectations will be attained, and it is possible that our actual results
may differ materially from those indicated by these forward-looking statements
due to a variety of risks and uncertainties. Simon undertakes no obligation
to publicly update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.
Those risks and uncertainties include, but are not limited to, the
national, regional and local economic climate, competitive market forces,
changes in market rental rates, trends in the retail industry, the inability
to collect rent due to the bankruptcy or insolvency of tenants or otherwise,
acquisitions and changes in market rates of interest or foreign currency. The
reader is directed to Simon's various filings with the Securities and Exchange
Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and
annual reports on Form 10-K for a discussion of such risks and uncertainties.
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a
real estate investment trust engaged in the ownership, development and
management of retail real estate, primarily regional malls, Premium Outlet
centers and community shopping centers. The Company's current total market
capitalization is approximately $34 billion. Through its subsidiary
partnerships, it currently owns or has an interest in 301 properties in North
America containing an aggregate of 204 million square feet of gross leasable
area in 39 states plus Canada and Puerto Rico. Simon also holds interests in
48 European shopping centers in France, Italy, Poland and Portugal and
4 Premium Outlet centers in Japan. Additional Simon Property Group
information is available at http://www.simon.com .
SOURCE Simon Property Group, Inc.
CONTACT: Shelly Doran, +1-317-685-7330 (Investors), or Les Morris,
+1-317-263-7711 (Media), both of Simon Property Group, Inc./