Simon Property Group Inc (NYSE:SPG) Proposes To Spin Off Smaller Malls Into Novel Entity


Dallas, Texas 12/18/2013 (FINANCIALSTRENDS) – Simon Property Group Inc (NYSE:SPG), recognized for its leading scrip and eagerness to snatch up firms it values anywhere in the globe, shocked Wall Street with a proposal to spin off its strip hubs and smaller plazas into an independent, publicly traded firm.

The still-to-be-named new venture will be based in Indianapolis, primarily at the Fortune 500 company’s Downtown HQs, and will take with it around 25 of Simon’s personnel and appoint untold others.

The decision by Simon is strange because the majority of new publicly traded firms come through IPO offerings from subsisting firms looking for additional working capital. Simon Property Group Inc (NYSE:SPG)’s proposal will deliver a ready-to-go, catered-up and well-funded firm valued around $6 billion. Its key assets will be 54 strip ­centers and 44 malls in around 23 states, comprising Clay Terrace retail center in Carmel and a dozen others in the state of Indiana.

“It’s going to be a significant firm in its own right,” stated Rick Sokolov, Simon’s president and COO. “We think it can be an instant, impactful head in the sections” of smaller malls as well as strip centers.

Simon Property Group Inc (NYSE:SPG) commemorates 20 years as a public firm

As per reports, the worldwide head in retail property, commemorated the 20th anniversary of its IPO on December 13.

This landmark honors a track record of sector-leading performance within the property business, comprising growth in major metrics since December 1993 –

  • Expansion in funds from processes
  • Equity market capitalization remained at $1.8 billion and has expanded to around $54 bln on December 12, 2013 market close
  • Overall investor return over these 20 years remained at 1,855%, a compound twelve-monthly growth rate of 16%, which considerably surpasses the realty index (MSCI U.S. REIT) and broad market index (S&P 500).