INDIANAPOLIS, May 1 /PRNewswire-FirstCall/ -- Simon Property Group, Inc. , the country's largest owner, developer and manager of high quality retail real estate, announced today that it had signed a definitive agreement with Federated Department Stores, Inc. to buy seven Federated buildings at seven SPG properties. Closing is expected to occur in July, 2006.
Following is the list of buildings that SPG is purchasing from Federated:
* Filene's at Burlington Mall, Burlington, MA
* L.S. Ayres at Castleton Square Mall, Indianapolis, IN
* Macy's at Pheasant Lane Mall, Nashua, NH
* Marshall Field's at University Park Mall, Mishawaka, IN
* Famous-Barr at Eastland Mall, Evansville, IN
* L.S. Ayres at Greenwood Park Mall, Greenwood, IN
* Macy's at South Shore Plaza, Braintree, MA
In addition, SPG announced today that it has reached an agreement with Federated to terminate the operating leases at the following locations:
* Macy's at Ross Park Mall, Pittsburgh, PA
* Macy's at Northshore Mall, Peabody, MA
Federated also announced that it intends to convert the following stores to Bloomingdale's at SPG properties:
* Robinson - May at Fashion Valley Mall, San Diego, CA
* Filene's at Mall at Chestnut Hill, Newton, MA
It is anticipated that these stores will reopen as Bloomingdale's in the fourth quarter of this year.
On February 6, 2006 Federated announced that it had reached an agreement directly with Boscov's to sell Boscov's the following stores located at SPG properties:
* Kaufmann's at South Hills Village, Pittsburgh, PA
* Strawbridge's at Lehigh Valley Mall, Whitehall, PA
* Strawbridge's at Montgomery Mall, Montgomeryville, PA
* Strawbridge's at Oxford Valley Mall, Langhorne, PA
It is anticipated that Boscov's will open these stores during the third and fourth quarters of this year.
That closing is anticipated to take place in the second quarter of this year with a reopening of these stores within 12 months.
SPG also confirmed today its development plans for each of the properties where it has acquired or gained control of a store previously operated by Federated:
* Burlington Mall - A new Nordstrom store will be constructed, expected to open in spring 2008 with additional specialty stores and restaurants.
* South Shore Plaza - A new Nordstrom store will be constructed, expected to open in spring 2009 with additional specialty stores and restaurants.
* Northshore Mall - A new Nordstrom store will be constructed, expected to open in spring 2010 with additional specialty stores and restaurants.
* Castleton Square Mall - A lifestyle component with a theatre, bookstore, specialty stores and restaurants will be added.
* University Park Mall - A lifestyle component with a bookstore, specialty stores and restaurants will be added.
* Eastland Mall - A Dillard's will occupy the former L.S. Ayres store.
* Greenwood Park Mall - A lifestyle component with a bookstore, specialty stores and restaurants will be added.
* Ross Park Mall - A new Nordstrom store will be constructed and is expected to open in fall 2008 with additional specialty stores, restaurants, and other retailers. The first phase of this redevelopment is the addition of The Cheesecake Factory which is under construction and will open in the fourth quarter of this year.
"We are excited about the opportunities for significant redevelopment at our properties presented by the acquisition and control of these department store buildings," said Richard S. Sokolov, president and chief operating officer of SPG. "We have once again demonstrated our ability to successfully retenant department store buildings that become available in our high-quality retail real estate portfolio of malls."
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(R) centers and community/lifestyle centers. The Company's current total market capitalization is approximately $42 billion. Through its subsidiary partnership, it currently owns or has an interest in 285 properties in the United States containing an aggregate of 200 million square feet of gross leasable area in 39 states plus Puerto Rico. Simon also owns interests in 51 European shopping centers in France, Italy, and Poland; 5 Premium Outlet centers in Japan; and one Premium Outlet center in Mexico. Additional Simon Property Group information is available at http://www.simon.com/ .
