INDIANAPOLIS (AP) — Simon Property Group’s deal that will give them 19 shopping malls for $1 billion is being touted as one of the largest transactions ever by a publicly held real estate company.
The 19 properties, which have 13.5 million square feet of retail space, are managed by Equitable Real Estate Investment Management Inc., a unit of the New York-based insurance and finance giant Equitable Cos. Inc.
The company would acquire a 50 percent stake in the Bangor Mall under the deal.
Under terms of the tentative accord, Simon will pay $700 million in cash and $300 million in newly issued Simon stock.
The deal would increase the mall space Simon owns by 41 percent, from 33 square million feet to 46 million square feet. The amount it manages will grow by 20 percent to 82.5 million square feet.
The deal will strengthen Simon’s presence on the East Coast and Florida, said David Simon, president of Simon and the son of chairman and co-founder Melvin Simon.