Simon Property Group Inc, (SPG) and Tanger Factory Outlet Centers Inc. (SKT) recently formed a 50-50 joint venture to develop Tanger Outlets in the south of Houston, Texas.
The first phase of center is spread across 55 acres and will have approximately 350,000 square feet of space with an option of another 120,000 square feet expansion.The joint venture partners will jointly host a Ground Breaking Ceremony at the site on August 30, 2011.
Greensboro, North Carolina-based Tanger is a publicly-traded real estate investment trust (REIT) that operates and owns, or has ownership interests in a portfolio of upscale outlet shopping centers. Tanger is expected to provide management and marketing services to the joint venture. However, both the companies will provide leasing services.
On completion, the partners expect to include more brands and introduce designer outlet stores with the purpose of further enhancing the value of the center. The location of the property coupled with the high quality of stores appears to be good investment and should generate attractive returns to their shareholders.
This transaction is a win-win situation for both the companies as this upscale shopping destination center is expected to boost the area's local economy, generate huge employment opportunities and also serve as a major attraction for all the residents and travelers in that area.
Headquartered in Indianapolis, Indiana, Simon Property is the largest publicly traded retail real estate company in North America, engaged inacquiring, owning and leasing a diverse portfolio of shopping malls.Currently, Simon Property retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
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