ROSELAND, NJ-More than two-thirds of Chelsea Property Group shareholders approved the $3.5 billion acquisition of their company by Indianapolis-based Simon Property Group. Chelsea stockholders will receive $66 per share from the transaction.

Chelsea, based here, is the largest US outlet center owner. The deal gives Simon, the largest mall owner, 60 properties totaling 16.9 million sf in the US and Japan. The transaction was first announced in June.

Chelsea has been a public company for 10 years. After the transaction, it will become a wholly-owned subsidiary of Simon and remain headquartered here. The outlet owner will also retain its current management team, and Chelsea Chairman and CEO David Bloom will become an Advisory Director on Simon’s board.

Simon and Chelsea have worked together before. The companies both own Las Vegas Premium Outlets and Chicago Premium Outlets, in Aurora, Ill., which opened in the summer. They also jointly opened Orlando Premium Outlets in 2000, but Simon sold its stake in that center to Chelsea two years later.

The buyout has not slowed Chelsea’s growth. Last month the company acquired the 289,000-sf Carlsbad (CA) Company Stores for $102.9 million. Chelsea is currently building two outlet centers, the 380,000-sf Seattle Premium Outlets in Tulalip, WA, scheduled to open next summer, and the 175,000-sf Toki Premium Outlets, near Nagoya, Japan, which is set to open in the spring.

Not only does the deal give Simon the country’s largest outlet center portfolio, but it also gives the company its first presence in Asia. Chelsea owns four outlets in Japan, and both companies have sought opportunities in other Asian countries.

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