Indianapolis, IN-based retail real estate investment trust (“REIT”) – Simon Property Group Inc. SPG – announced the total investment of $250 million toward the enhancement of the shopping experience at The Galleria, the largest shopping center in Texas and the fourth largest in the U.S.
In fact, Simon Property intends to invest $30 million for renovation of the luxury wing of The Galleria. This will complement the previously announced construction of a new, state-of-the-art flagship Saks store, adding 110,000 square feet of new retail space and setting up a 14,000 square feet retail building. The renovation work in The Galleria will start in spring.
The Galleria will witness the addition of 4 new luxury tenants – The Webster, La Perla, Tod’s and Celine – along with the existing 80 retailers. The Webster, La Perla and Tod’s are set to open stores this year, while Celine is slated to inaugurate next year.
In The Galleria, redevelopment is also well underway with construction of the new Saks Fifth Avenue, which will possibly relocate to a new, high-end, 200,000 square feet flagship store adjacent to its current location in spring 2016.
The Galleria, due to its excellent positioning, allures premiere brands across the globe. Further, presence of top anchors such as Saks Fifth Avenue, Neiman Marcus and Nordstrom, adds to its appeal. Investments in such a sought-after retail location, along with the addition of luxury tenants, are expected to positively impact the company’s revenue growth.
Currently, Simon Property carries a Zacks Rank #3 (Hold).
Investors interested in the retail REIT may consider stocks like Acadia Realty Trust AKR, Agree Realty Corp. ADC and National Retail Properties, Inc. NNN. All these stocks hold a Zacks Rank #2 (Buy).
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