Simon Property Group and Taubman Centres has today announced that they have entered into a definitive agreement under which Simon will acquire an 80% ownership interest in The Taubman Realty Group Limited Partnership.
Simon Property Group (SPG) will pay the current share price of $52.20 per share for a 51% over the stock’s closing price on Friday. The deal is expected to immediately boost Simon’s funds from operations and to be at least 3% accretive on an annualized basis after closing.
Simon Chairman of the Board, Chief Executive Officer and President David Simon stated, “We are very pleased to announce this transaction, which will be immediately accretive to Simon’s FFO. 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. I look forward to partnering with Bobby and the TRG executive team in this exciting new joint venture.”
