BALTIMORE-After close to half a year of regulatory scrutiny, Simon Property Group has closed its $2.3-billion purchase of locally based Prime Outlets Acquisitions Co. and its affiliated entities from the Lightstone Group. When the deal was first struck at the end of 2009, it was to have added eight million square feet to Simon’s portfolio.
During the company’s recent earnings call, though, CEO David Simon noted that three properties would not be included in the purchase: Prime Outlets in St. Augustine, FL and two land sites in Livermore Valley, CA and Grand Prairie, TX. There was no explanation for the change other than the comment that the US Federal Trade Commission was still reviewing the deal.
The finalized version of the transaction is bringing 21 outlet centers to Simon’s portfolio, including Prime's Barceloneta outlet center in Puerto Rico, which Simon acquired in May of this year. The transaction also includes the assumption of approximately $1.55 billion of Prime's existing debt and preferred stock.
Prime Outlets owns 22 centers throughout the US. Some of its major properties are located in Baltimore, San Antonio, Orlando and Washington, DC. The portfolio was 92% occupied at the beginning of the year, with the average center posting annual sales of $370 per square foot.
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