November 24, 2024
Business

Bangor Mall proprietor buying outlet operator

INDIANAPOLIS – Simon Property Group, North America’s largest shopping-mall owner, announced Monday it was buying Chelsea Property Group in a deal the companies valued at about $3.5 billion.

Chelsea, based in Roseland, N.J., operates 60 outlet malls and shopping centers in 31 states and Japan.

Simon Property Group and the family of Arthur L. Powell of King of Prussia, Penn., which founded Kravco Co. and Kravco Investments, each own half of the Bangor Mall.

Indianapolis-based Simon said the company would pay $66 a share for each of Chelsea’s shares and units outstanding. It also will assume Chelsea’s existing debt and preferred stock, which totaled about $1.3 billion as of March 31.

Simon chief executive David Simon said the deal was a growth opportunity for the company.

“Chelsea is the preeminent brand in the premium outlet industry, just as Simon is in the regional mall industry, and we’ve had three very successful joint ventures between the two companies,” Simon said.

Chelsea will become a Simon division and will continue to be based New Jersey, the companies said. David Bloom, Chelsea’s chairman and chief executive officer, and the company’s existing management were to remain in their current roles.

If approved by Chelsea’s shareholders, the deal is expected to close by the end of this year.

Chelsea’s properties include 31 outlet centers in the United States and four in Japan. It has centers in the New York, Los Angeles, Boston and Orlando metro areas and Edinburgh and Michigan City in Indiana.

Simon currently owns or has an interest in 248 properties in 37 states as well as Canada and Puerto Rico. Simon also has interests in 48 properties in Europe.


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