In sync with the strategy of enhancing its premium portfolio, Simon Property Group Inc. SPG, the leading global retail real estate investment trust (“REIT”), announced the expansion plan of Shisui Premium Outlets, in partnership with Mitsubishi Estate Co., Ltd. MITEY. The success of the Shisui Premium Outlets, which is visited by more than six million shoppers a year, has prompted the Indianapolis, IN-based Simon Property to go for this expansion plan.
Notably, Shisui Premium Outlets kick started in Apr 2013. The first phase of the project was fully leased and comprised 121 stores housing international as well as Japanese brands and restaurants. The shopping center, located quite close to Narita International Airport, is around 40 miles away from the center of Tokyo.
The latest expansion will include 62 new stores with an additional space of 136,000 square feet, thereby bringing the size of the total project to 375,000 square feet. The new stores will include 9 restaurants, as well as 9 new brands.
Simon Property is engaged in acquiring, owning and leasing a diverse portfolio of shopping malls. The company’s real estate platforms consist of Malls, Premium Outlets, The Mills and other properties. It also enjoys a diversified exposure to retail assets across the U.S. as well as internationally. This latest expansion plan, in sync with the company’s usual strategy, will help it better sustain long-term growth as compared with its domestically focused peers.
Currently, both Simon Property and Mitsubishi Estate Co. carry a Zacks Rank #3 (Hold).
Investors interested in retail REITs may consider stocks like Acadia Realty Trust AKR and National Retail Properties, Inc. NNN. Both these stocks hold a Zacks Rank #2 (Buy).
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