Simon Property Group Inc.’s (SPG) portfolio enhancement activities continue. The Indianapolis, IN-based retail real estate investment trust (“REIT”) has teamed up with Cassco Development Company, the development arm of Edwards Ranch, to develop around 500,000 square feet of shopping place on the famous Edwards Ranch. Notably, shops at Clearfork will be anchored by Neiman Marcus, a luxury specialty department store owned by the Neiman Marcus Group, with headquarters in Dallas, TX.
Given the huge expertise of Simon Property in successfully constructing retail shops, the execution standard of the project is expected to uphold the legacy and tradition of Edwards Ranch. Further, the project will likely fetch economic benefits to the Fort Worth area.
The project will include 100 high-end specialty stores, along with a luxury theater. It will offer a unique shopping and dining experience for the Fort Worth community. With construction work expected to start in spring 2015, the property will likely be inaugurated in Feb 2017.
Shops at Clearfork are part of the Master Plan for Clearfork. The aim of the Master Plan is to offer an integrated, mixed-use development project, comprising 2 million square feet of office space, 1.2 million square feet of retail and 2,500 multi-family residential units.
In recent times, Simon Property has taken a spate of initiatives to enhance its retail portfolio. Notably, last month, Simon Property revealed the accumulation of 3.6% stake in The Macerich Company (MAC), a reputed Retail-REIT company. Simon Property may also seek a waiver for excess share provision (that limits stake ownership of over 5%), which could pave its way for further increasing stake in the company.
Currently, Simon Property has a Zacks Rank #3 (Hold), while Macerich holds a Zacks Rank #2 (Buy). Investors interested in Retail-REITs may consider stocks like American Assets Trust, Inc. (AAT) and DDR Corp. (DDR). Both these stocks hold the same rank as Macerich.
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