Simon Property Group completes $3.4B acquisition of Taubman Centers Inc.
Simon Property Group Inc. has completed its acquisition of an 80% ownership interest in the Taubman Realty Group Limited Partnership through a deal worth $3.4 billion.
Simon owns two shopping centers in Puerto Rico, while Taubman owns one.
Under the terms of the transaction, Simon, through its operating partnership, Simon Property Group, L.P., acquired all of Taubman Centers Inc.’s common stock for $43 per share in cash, and the Taubman family sold approximately one-third of its ownership interest at the transaction price and remains a 20% partner in Taubman Realty Group.
Simon Property Group is the owner of the Plaza Carolina shopping center and the Puerto Rico Premium Outlets in Barceloneta. Taubman owns The Mall of San Juan, which recently marked its fifth anniversary of operations.
“We’re very pleased to complete this transaction and to add some of the world’s premier retail assets to our portfolio,” said Simon Properties CEO David Simon.
“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. I look forward to partnering with the Taubmans in this exciting new joint venture, and to driving strong performance at TRG’s properties.”
Attempts to reach Simon Properties spokespeople to find out more details about its plans for the local properties were unsuccessful, as calls went unreturned.
“David and I share a vision for optimizing TRG’s assets and a strong commitment to our shoppers, retail partners and communities,” said Robert Taubman, CEO of Taubman Realty Group.
“I’m excited to work with the entire Simon team as we share ideas and implement best practices to enhance the operations and cash flow of our new joint venture,” he said.
The merger was first announced in February 2020, when Simon offered $52.50 per share, or $3.6 billion, in cash for the Taubman properties. But it nearly fell apart in June, after Simon accused Taubman of not taking enough steps to mitigate the impact of the COVID-19 pandemic. The companies got negotiations back on track in November, when — among other things — the price per share was reduced, as this media outlet reported.