Prime Outlet sale to Simon Property Group is completed

Posted: 1:51 pm Tue, August 31, 2010
By Staff and Wire Reports

Baltimore-based Prime Outlets is now part of the Simon Property Group Inc. following the completion of a $2.3 billion sale, Simon announced Tuesday.

Prime owned 22 outlet centers in major metropolitan areas including Washington and Orlando, Fla. With the completion of the deal Simon has 63 outlet centers with about 25 million square feet.

Simon also owns regional malls and other assets. The company owns 387 properties with 262 million square feet, including sites in Europe and China.

The purchase from Lightstone Group was announced in December, and Simon had expected to complete it in March. The company signed a proposed consent agreement with Federal Trade Commission staff that will be sent to the agency for its approval, Indianapolis-based Simon said in a statement Tuesday.

The agreement was modified since the December announcement so that Simon would no longer purchase a Prime outlet mall in St. Augustine, Fla., and two retail projects under development in Livermore Valley, Calif., and Grand Prairie, Texas, Simon said.

The acquisition adds 21 outlet centers to the company’s portfolio. The purchase price includes the assumption of about $1.55 billion of Prime debt and preferred stock, Simon said.