How Much Bigger Can Simon Get?

Simon Property Group’s acquisition of Prime Outlets’ 22 centers for $2.33 billion was a surprise, not because the deal doesn’t make sense for the REIT, but because we assumed that we’d hear about them buying someone else first.

It’s no secret that the largest mall REIT, which now has more outlet centers than anyone at 63, is vying for some or all of General Growth Properties’ assets as well. How much bigger can Simon get?

VIDEO: Simon on Buying GGP Malls

Simon Property Group CEO David Simon weighs in on possibly acquiring some of General Growth’s portfolio during a Bloomberg Television interview. “We’re a logical buyer,” he says. “There’s a lot we can do with those properties.”

Simon also says that the industry could see a recovery some time next year if job growth pics up. Click on the image below for the full interview.

Also, RIP Melvin Simon.

Watch Video

Simon Interested in Some GGP Malls

This article about the health of Simon Property Group in the recession, reveals that the mall owner might consider acquiring some General Growth Properties assets when the latter’s bankruptcy proceedings mature.

Said CEO David Simon: “I don’t think we would be interested in the whole company. They have some assets that clearly would fit nicely with ours.”

Will You See “Paul Blart: Mall Cop?”

Over here at Counter Culture, we love us some NBA, so when there were about 10 nationally televised games on Christmas, we were pretty much glued to the TV.

And about every five minutes there was the trailer for “Paul Blart: Mall Cop,” a silly-looking comedy that we probably won’t be checking out any time soon. (See trailer below.)

We did a quick Google search on it and found, through Wikipedia, that the movie was filmed at two Simon Property Group centers, Burlington (MA) Mall and South Shore Plaza, in Braintree, MA; even though it’s supposed to take place at a fictional (we think) center in New Jersey called West Orange Pavilion.

How’s that for useless knowledge of the day!?!?!

Should Target Have a REIT Spin Off?

William Ackman, a 10% shareholder of the discounter, thinks so. The head of Pershing Square Capital Management is proposing that Target spin off its company-owned stores and land into an Inflation-Protected REIT.

Its real estate would then enter a 75-year triple-net-lease-deal for the stores. Ackman says TIP REIT, as he calls it, would be the largest of its kind, with its $27.5-billion market value eclipsing Simon Property Group’s $20.8 billion.

General Growth: A Good Time to Sell?

The news that mall-owner General Growth Properties is looking to sell off its assets isn’t surprising, given its highly publicized debt issues. We’ve also heard rumors that the REIT has had layoffs at its Chicago headquarters.

But is now the best time for the company to try to do this with all of the financial turmoil going on?

Overbuilding? Naaah!

We’ve heard both sides of the story for years. Some industry veterans have told us that the US is under retailed. Others have said for a while now that there is way too much product out there.

Well, this Wall Street Journal article strongly supports the later argument. Now that the bottom has dropped out of the lending market and consumer confidence is an oxymoron, it’s not looking so good on the retail development front – especially for larger projects.

Protesting at the Mall

A group of activists in Long Island, NY are protesting for their right to protest in area malls. This article explains how members of an antiwar group, Long Island Alliance for Peaceful Alternatives is pushing for the right to protest in various malls there, an action that is not supported by New York State law.

However, according to the article, in California, free-speech rights are given to mall attendees despite the fact that the centers are private property.

General Growth Looking At JV Sales?

An article in the Wall Street Journal (via Reuters) reports that General Growth Properties is looking at placing some of its marquee malls in joint-venture deals to pay off the REIT’s $18.7 billion of debt.

High-end assets that the company owns outright, such as Fashion Show Mall and the Grand Canal Shoppes in Las Vegas and Ala Moana Center in Honolulu, could end up as candidates, the article says. Bernie Friedbaum, General Growth’s CFO is quoted saying that the firm is approaching life-insurance companies and pension funds.