Simon Property Group, Inc. (“Simon”) and Institutional Mall Investors (“IMI”), the co-investment venture owned by an affiliate of Miller Capital Advisory, Inc. and The California Public Employees’ Retirement System (“CalPERS”), today announced that they have formed a joint venture to own and operate “The Shops” at Mission Viejo in the Los Angeles suburb of Mission Viejo, California, and “Woodfield Mal”l in the Chicago suburb of Schaumburg, Illinois. Simon and IMI will each own 50% of Woodfield.
Simon will own 51% of Mission Viejo and IMI will own the remaining 49%. Simon is providing management and leasing services to the joint venture.
Prior to formation of the joint venture, Simon owned 100% of The Shops at Mission Viejo and IMI owned 100% of Woodfield Mall. The Shops at Mission Viejo is a 1.2 million square foot center anchored by Nordstrom and Macy’s. Woodfield Mall is a 2.2 million square foot center anchored by Nordstrom, Macy’s, Lord & Taylor, JCPenney and Sears.
The Shops at Mission Viejo is currently unencumbered, however, the joint venture expects to place a mortgage on the property in the next two weeks. Woodfield Mall is encumbered by a $425 million mortgage loan which matures in March of 2024 and bears interest at 4.5%.
«As a result of this transaction, we have added the iconic Woodfield Mall to our portfolio» said David Simon, Chairman and CEO of Simon Property Group. «This premier mall is located in one of the country’s largest markets and we welcome the opportunity to enhance its productivity and value through our leasing and management efforts».
Andrew Miller, President and CEO of Miller Capital Advisory said, «We are pleased to expand our strategic relationship with Simon – other malls owned jointly include The Galleria® in Houston, Texas; The Fashion Centre at Pentagon City in Arlington, Virginia; and The Westchester in White Plains, New York. The transaction also increases our presence in the important California market with the addition of The Shops at Mission Viejo to our collection of high quality retail properties».
Fonte: CS di Simon