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.


4 Responses to “VIDEO: Simon on Buying GGP Malls”

  1. 1 William Eddy September 18, 2009 at 8:47 am

    This does not come as a surprise, but Simon’s acquisition of some or may be many of GGP’s malls is not a good thing for our industry. Simon Properties is already an arrogant and difficult landlord to work with. They do own some nice properties, but, we all remember the golden rule…”He who owns the gold rules.”

    There are a handful of developer/owners today that own too many centers. Tenants are told that if they want a store in one of their “A” malls, they must open stores in one or two of their “C” and “D” malls. That’s called leverage and it is a major reason that our industry is in trouble. Greedy landlords and tenants willing to take a chance on operating profitably in
    secondary and tertiary malls in order to open a store in the
    “A” mall. It worked fairly well during the good years, but is causing major bleeding today in the midst of this recession.

    Simon Properties Group along with GGP, Westfield, Macerich, etc. are public companies today and must show their stockholders increases in income, earnings, etc. Minimum rents and NNN charges have risen dramatically and tenants complain, but grudgingly pay them.

    Our industry, along with the rest of the country has been hit extremely hard during the current recession.
    This hasn’t bothered the Simon company. They just keep asking for more. I understand a business must make a profit. I have my
    own business too, and understand this.

    Bottom line: A larger Simon Properties Group will not benefit our industry. It will just give them a bigger hammer to hit tenants over the head with. Relationships and real concern over the merchandising of a center are disappearing rapidly. It’s a matter today of just how much money can we get from our tenants.

    None of this is good for our industry. It is good for the Simon Properties Group. They are smart people.!


    Bill Eddy

  2. 2 Dawson September 18, 2009 at 12:27 pm

    Simon is in no position, financially, to be buying more property. Take a look at their liability and debt side of the equation, it’s a secret in the industry, but they really are in no position to be buying, they really should be selling their unprofitable centers. It’s all a PR ruse.

  3. 3 Tie-in sales September 18, 2009 at 12:55 pm

    Developers need to beware that they are not violating antitrust law. A tie-in sale in antitrust law, it the requirement if one product or service is purchased then another product or service must also be purcased, even if it is not desired by the customer. Retailers need to know their legal rights and protect themselves.

  4. 4 Consolidation September 18, 2009 at 1:12 pm

    AS our industry becomes even more consolidated, particularly on the Landlord/Developer side, we must all be careful to guard ourselves against Landlord hardball tactics or using tie-ins and anti-competitive measures. Look what happened to GGP in the lawsuit in Glendale, CA where GGP had to pay $74 million plus another $15 million regarding the Caruso lawsuit involving The Cheesecake Factory.

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