Ivanhoe Buys Into ERE

Industry sources tell GlobeSt.com the interest acquired by Ivanhoe Cambridge was sold by Peabody and Argo Group investment funds, managed by JP Morgan and the O'Connor Group. Neither Ivanhoe Cambridge nor Simon Property Group named the seller or the cost of the acquisition.

Ivanhoe Cambridge and SPG say they will equalize ownership "in the future" through the purchase of additional interests from ERE founders. In the meantime, Simon and ERE will have equal representation on the board of directors. Hans Mautner, president of Simon's International Division and chairman of Simon Global Ltd., will continue to serve as chief executive officer of ERE.

SPG chief executive David Simon says the transaction "gives the entity stable ownership" with which to pursue its development pipeline. Ivanhoe Cambridge chief executive Rene Tremblay says the acquisition furthers the company's strategy to diversify geographically and expand its portfolio and network in Europe via an established platform with growth potential.

Ivanhoe Cambridge is active in Canada, the United States and Europe with a $7-billion portfolio that includes 37 million-sf in 43 regional and super-regional shopping centers. Simon Property Group owns 296 properties in the US totaling 202 million sf and another 51 shopping centers in Europe. The company's current total market capitalization is approximately $38 billion. ERE, through BEG, is a full-service developer, manager and owner of retail properties that currently owns interests in 11 retail properties comprising over 4.2 million sf of space in France, Poland and Portugal, including Eastern Europe's largest shopping center, Arkadia, located in Warsaw.