Simon Property Group
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| Type | Public (NYSE: SPG) |
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| Genre | Malls, shopping centers, outlet malls |
| Founded | 1993 |
| Founder(s) | Melvin Simon |
| Headquarters | Indianapolis, Indiana,  United States |
| Number of locations | 46 U.S. states, Japan, South Korea, Mexico and five European countries |
| Industry | real estate investment trusts |
| Website | simon.com |
Simon Property Group, Inc. is an S&P 500 company and the largest public U.S. real estate company. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers®, The Mills®, community/lifestyle centers and international properties. It currently owns or has an interest in 384 properties comprising 261 million square feet of gross leasable area in North America, Europe and Asia. The Company is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG. For further information, visit the Company's website at www.simon.com.
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[edit] History
Simon Property Group was formed in 1993 when the majority of the shopping center interests of Melvin Simon & Associates became a publicly traded company. Melvin Simon & Associates, owned by brothers Melvin Simon and Herbert Simon, had been founded in 1960 in Indianapolis, Indiana, and had long been one of the top shopping center developers in the United States.
In 1996 Simon DeBartolo Group was formed with Simon Property's merger with former rival DeBartolo Realty Corp.[1] DeBartolo Realty had recently become a publicly traded company itself and encompassed the shopping mall interests of the Edward J. DeBartolo Sr. family, another leading developer. Simon DeBartolo rapidly acquired assets in the then fragmented industry, notably The Retail Property Trust and a group of properties held by IBM's pension plan in 1997 and Corporate Property Investors (CPI) in 1998. Following the CPI acquisition in 1998, the company announced it was reverting to its original name, Simon Property Group, as the DeBartolo family was resuming its private real-estate development operation, while retaining their interest in Simon.
Simon continued to be a prolific acquirer of shopping centers, including a portfolio from New England Development in 1999, several prime properties from Rodamco North America in 2002 (including Houston Galleria and SouthPark Mall), several high-profile properties such as Dadeland Mall, Fashion Valley Mall Newport Centre Mall Rockaway Townsquare Mall and Stanford Shopping Center, and in 2004 Chelsea Premium Outlets. In 2003 Simon became a co-owner of The Kravco Company, which changed its name to Kravco Simon. After years of litigation, Simon's interest in Mall of America was sold in late 2006 and management rights were terminated in early 2007. On April 3, 2007, a partnership including Simon agreed to acquire the financially-troubled Mills Corporation.[2]
Simon Property Group is the largest publicly traded retail real estate company in North America with a total market capitalization (equity and debt) of approximately $56 billion.[3]
In 2006, Simon created a 50/50 joint venture with Publicis to launch a High-definition television program called OnSpot Digital Network with 1,200 TVs placed in their malls.
[edit] Simon gift cards
Simon is known for its line of cobranded VISA gift cards campaigns associated with local malls, specific organizations, such as Purdue University or Boston Celtics, or upscale properties, such as King of Prussia Mall, Stanford Shopping Center and The Forum Shops at Caesars. In 2006, Simon signed a agreement with the Susan G. Komen for the Cure organization to create the "Simon Pink Ribbon Giftcard" to benefit breast cancer awareness efforts. From each gift card sold since Summer 2006 at select Simon malls, Simon donates $1[4] from the card's $5.95 handling fee[5] to the Susan G. Komen for the Cure organization.
Simon's gift card polices came under fire after several U.S. states filed lawsuits seeking to eliminate gift card expiration dates and "dormancy fees" -- monthly maintenance fees imposed on unused balances after specified time period.[6] Simon sought to have the lawsuits dismissed, saying fees were part of federal, not state, regulations.[7] In 2007, the New Hampshire case was partially settled after Simon agreed to reimburse customers for $440,000 in fees deemed illegal by the state.[8][9]
[edit] See also
[edit] References
- ^ Kumer, Ken (1996-03-27). "SIMON, DEBARTOLO MALL PROPERTY GROUPS JOIN FORCES". djc.com. Seattle Daily Journal and djc.com. http://www.djc.com/news/re/10008055.html. Retrieved on 2007-10-08.
- ^ Simon Property Group Inc SPG (NYSE), Reuters. Accessed September 17, 2007. "On April 3, 2007, SPG-FCM Ventures, LLC, a joint venture between an entity owned by Simon Property and funds managed by Farallon Capital Management, L.L.C., completed the acquisition of The Mills Corporation."
- ^ Jones, Chris. "Simon Property Group to Acquire Chelsea Property Group in $3.5 Billion Deal.", Las Vegas Review-Journal, June 22, 2004. Accessed September 18, 2007. "The largest publicly traded retail real estate company in North America with nearly 250 properties in 37 states, Canada and Puerto Rico..."
- ^ News for Austin, Texas | KVUE.com | Local News
- ^ Simon Giftcard Cardholder Agreement
- ^ Gift cards may bear unwanted fees
- ^ US boosts state's suit over terms of gift cards - The Boston Globe
- ^ http://www.wcsh6.com/news/article.aspx?storyid=53065
- ^ News Releases - NHDOJ
