Simon Property to buy US rival Taubman in $3.6bn deal

Simon Property Group has agreed to buy shopping mall REIT Taubman Centers in an all-cash deal valued at around $3.6bn (£2.8bn). Indianapolis-based Simon will pay $52.50 per Taubman share. Michigan-headquartered Taubman owns, manages and/or leases 26 super-regional shopping centers in the US and Asia, including about 25m sq ft of gross leasable area. The company will continue to be managed by its existing executive team, under the leadership of Taubman chairman, president and chief executive Robert Taubman, in partnership with Simon. The deal is expected to close by mid-2020. Taubman’s assets include 24 upscale retail properties, 21 in the US and three in Asia. Simon will acquire an 80% interest in Taubman Realty Group Limited Partnership, which owns Taubman Centers. The Taubman family will dispose of around a third of its stake in the company at the transaction price and remain owner of the remaining 20% of shares. Simon chairman of the board, chief executive and president David Simon said: “By joining together, we will enhance the ability of TRG to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects for local communities.”   To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette