Simon Property Group
| File:Simon Property Group logo.svg Logo of Simon Property Group | |
| Company type | Public |
|---|---|
| Industry | Real estate investment trust |
| Founded | 1993 in Indianapolis, Indiana, United States |
| Founder | Melvin Simon, Herbert Simon |
| Headquarters | Indianapolis , United States |
Area served | Worldwide (North America, Europe, Asia) |
Key people | David E. Simon (CEO and chairman) |
| Products | Shopping malls, outlet centers, community/lifestyle centers |
| Website | simon |
Simon Property Group, Inc. stands as a foremost American real estate investment trust with a core focus on owning and managing shopping malls, outlet centers, and community or lifestyle center developments. Recognized as the largest shopping mall proprietor in the United States, the company holds substantial market influence with stakes in 232 properties globally, comprising 196 malls across North America and 36 located in Europe and Asia. Its headquarters are situated in Indianapolis, Indiana. In 2023, Simon Property Group reported revenues amounting to US$5.66 billion alongside a net income of US$2.28 billion, underscoring its robust financial standing. Established by entrepreneurs Melvin Simon and Herbert Simon, the enterprise’s strategy revolves around targeted acquisitions and effective management of premier retail properties to foster growth and maintain competitive strength. Leadership is spearheaded by CEO and chairman David E. Simon, who oversees global operations and strategic direction. The company’s extensive portfolio includes subsidiaries such as Simon Malls, Premium Outlets, The Mills, Kravco, Klépierre, Taubman Centers, JCPenney, and Jamestown L.P., contributing to its diverse presence within the retail real estate sector.
20th century
The origins of Simon Property Group trace back to 1960 when brothers Melvin Simon and Herbert Simon initiated development of strip malls in Indianapolis, Indiana. The firm went public in December 1993 through an initial public offering that was then the largest ever for a real estate investment trust (REIT). A significant expansion occurred in 1996 with the merger between Simon Property and DeBartolo Realty Corporation, resulting in the formation of Simon DeBartolo Group and a notable increase in its property holdings.
In 1997, the company completed a $1.2 billion hostile acquisition of The Retail Property Trust and joined forces with Macerich to purchase 12 malls from IBM’s pension fund for $974.5 million, thereby enhancing its market position. The subsequent year saw the acquisition of Corporate Property Investors and a return to the Simon Property Group name, further solidifying its industry dominance. Additionally, it secured an ownership interest in Groupe BEG, a European shopping center operator, marking its initial foray into international markets.
Continuing its expansion strategy in 1999, Simon Property Group acquired 14 shopping centers from New England Development for $725 million, reinforcing its aggressive approach to growth through acquisitions aimed at broadening its portfolio and market influence.
21st century
In 2002, Simon Property Group collaborated with Westfield Group and the Rouse Company to acquire 13 properties from Rodamco North America, including notable centers such as Copley Place, Houston Galleria, and SouthPark Mall. The following year, it purchased a majority stake in The Kravco Company—the owner of King of Prussia mall—for $300 million. Entering the outlet mall segment in 2004, Simon acquired Chelsea Property Group Inc. for $3.5 billion.
April 2007 marked the acquisition of The Mills Corporation by Simon along with Farallon Capital. In 2010, Simon submitted a $10 billion bid for General Growth Properties (GGP), which was undergoing bankruptcy proceedings; however, this offer was declined. Later that year, Simon proposed a $2.5 billion equity investment in GGP but withdrew after GGP favored Brookfield Asset Management’s bid.
Simon broadened its outlet mall holdings by acquiring Prime Retail's Prime Outlets-Puerto Rico in May 2010 and then purchasing an additional 21 outlet malls for $2.3 billion in August of the same year. Although it made a $4.5 billion offer for Capital Shopping Centres Group plc later that year, it retracted after rejection. In September 2011, the company added Southdale Center in Minnesota to its portfolio.
The company expanded into Canada with openings including Toronto Premium Outlets in 2013 and Premium Outlets Montreal in 2014; this was followed by Premium Outlet Collection YEG at Edmonton International Airport in 2018. In May 2014, Simon completed the spin-off of Washington Prime Group under Mark Ordan—former CEO of Mills Corporation—which later acquired Glimcher Realty Trust in 2015 and rebranded as WP Glimcher; concurrently, Simon acquired Jersey Gardens and University Park Village.
In 2015, Simon proposed a $23.3 billion acquisition of Macerich but withdrew after rejection. Partnering with Authentic Brands Group and GGP Inc., Simon acquired Aéropostale in 2016 and Forever 21 in 2020.
On March 18, 2020, amid the COVID-19 pandemic, Simon temporarily shuttered all U.S.-based malls while holding status as the nation’s largest mall owner at that time. By August of that year, it began exploring converting large retail spaces into Amazon fulfillment centers. That same month saw Simon join forces with Authentic Brands to acquire Brooks Brothers and Lucky Brand Jeans. In December 2020, it completed a $3.4 billion purchase of Taubman Centers and partnered with Brookfield Asset Management to acquire J.C. Penney.
In April 2022, Simon alongside Brookfield announced intentions to bid for Kohl's department stores. Later that year in October, Simon expanded its global footprint by acquiring a half stake in Jamestown L.P., a real estate development firm.
Litigation
From 2007 to 2011, the company encountered multiple legal challenges that influenced both its public image and internal policies. In 2007, it faced a lawsuit concerning its prohibition of Segways, which was argued to breach the Americans with Disabilities Act. Two years later, in 2009, a racial discrimination lawsuit was brought by a nightclub alleging that the company obstructed its primary entrance due to the racial composition of its patrons. In 2011, accusations of pregnancy discrimination arose after the dismissal of an expectant employee. Additionally, that year, the company reached a $125,000 settlement with the Equal Employment Opportunity Commission following allegations that Latino custodial staff endured daily verbal harassment related to their national origin.
See also
External links
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- Simon Property Group
- 1993 establishments in Indiana
- American companies established in 1993
- Companies based in Indianapolis
- Companies listed on the New York Stock Exchange
- Financial services companies established in 1993
- Real estate companies established in 1993
- Real estate investment trusts of the United States
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- Companies of the United States by year of establishment