Simon Property Group and Park Place Entertainment Execute Ground Lease for Major Expansion of The Forum Shops at Caesars
Construction Underway with Completion Scheduled for Fall 2004
LAS VEGAS, Feb 25, 2003 /PRNewswire-FirstCall via COMTEX/ -- Simon Property
Group, Inc. (NYSE: SPG) and Park Place Entertainment Corporation (NYSE: PPE),
parent company of Caesars Palace, today announced that the two parties have
executed a ground lease for prized property fronting Las Vegas Blvd on the Las
Vegas Strip. This lease execution allows for commencement of construction on the
expansion of The Forum Shops at Caesars, Las Vegas' premier retail, dining and
entertainment destination and the most successful shopping venue in the country.
The 175,000-square-foot, three-level expansion will extend from the existing
retail, dining and entertainment icon to the famed Las Vegas Strip. The
additional array of upscale specialty retail tenants will further expand The
Forum Shops' selection of luxury brand merchandise. Several new restaurants also
will further broaden its appeal as the city's premier venue for an exclusive
fine dining experience.
The classic Roman architecture of the expansion, combined with a grand
pedestrian plaza on Las Vegas Boulevard, will create a signature entrance to The
Forum Shops. Construction on the expansion began immediately upon the lease
signing with completion scheduled for the fall of 2004.
"From the day The Forum Shops opened in 1992, its momentum has never waned,"
said David Simon, chief executive officer of Simon Property Group. "This is
undisputedly the most valuable retail real estate in Las Vegas, and this newest
expansion provides the opportunity to further solidify The Forum Shops' position
as one of the country's premier shopping and entertainment destinations for both
domestic and international visitors."
Pent-up demand for space at The Forum Shops has generated a waiting list of
world-class retailers and restaurants. Recent additions include Valentino,
Tod's, Chopard, MAC Cosmetics, D&G Sport, Dolce & Gabbana and Roberto Cavalli.
Exclusive retailers soon to open include Tourneau, Jay Strongwater and Burberry.
And though construction is just underway, Joe's Seafood, Prime Steak & Stone
Crab (of South Beach fame) and Donald Pliner have already committed to the
Additionally, Louis Vuitton and Christian Dior, two top international luxury
brands -- both owned by LVMH Fashion Group -- are undergoing major expansions at
The Forum Shops. Louis Vuitton has experienced tremendous success and is
tripling in size and offering its full range of product lines in the retailer's
new Global Store. Christian Dior, which has also experienced outstanding
success, has committed to an expanded presence at The Forum Shops.
The expansion of The Forum Shops comes as Las Vegas continues to solidify itself
as a world-class shopping destination, with average shopping expenditures per
visitor rising more than 25% in the last five years, according to the Las Vegas
Convention and Visitors Authority statistics.
"The Forum Shops at Caesars represents a great success story for Caesars Palace,
for Park Place Entertainment and for Las Vegas," said Park Place Entertainment
Corporation President and Chief Executive Officer Wallace R. Barr. "On an
average day, the shops attract 50,000 people, driving more than 10 times the
foot traffic of the most successful Las Vegas showroom. The expansion will
complement all the other great new attractions at Caesars Palace, giving Las
Vegas visitors even more reasons to make Rome their home."
The Forum Shops at Caesars opened in May, 1992 with 283,000 square feet of GLA.
A second phase, which increased The Forum Shops' size to 500,000 square feet,
was completed in August, 1997. In 2002 alone, the center welcomed 18 million
visitors, and The Forum Shops continues to be widely acclaimed as the most
productive shopping center in the U.S. In February, 2003, Simon announced it
will become sole owner of The Forum Shops.
About Simon Property Group
Simon Property Group, Inc. (NYSE: SPG), headquartered in Indianapolis, Indiana,
is a real estate investment trust engaged in the ownership and management of
income-producing properties, primarily regional malls and community shopping
centers. Through its subsidiary partnerships, it currently owns or has an
interest in 242 properties containing an aggregate of 183 million square feet of
gross leasable area in 36 states, as well as nine assets in Europe and Canada.
Additional Simon Property Group information is available at www.shopsimon.com .
About Park Place Entertainment
Park Place Entertainment owns, manages or has an interest in 27 gaming
properties operating under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton
and Paris brand names with a total of approximately two million square feet of
gaming space, 29,000 hotel rooms and 55,000 employees worldwide.
Additional information on Park Place Entertainment can be accessed through the
company's web site at www.parkplace.com .
NOTE: This press release contains "forward-looking statements" within the
meaning of the federal securities law, which are intended to qualify for the
safe harbor from liability provided there under. All statements which are not
historical statements of fact are "forward-looking statements" for purposes of
these provisions and are subject to numerous risks and uncertainties that could
cause actual results to differ materially from those expressed or implied in the
forward-looking statements. Forward-looking statements include all financial
projections, including projections of revenue, market share, earnings, EBITDA,
free cash flow, statements of management's plans, objectives or expectations of
future economic performance, statements regarding new developments or
opportunities, statements of belief, and/or statements regarding anticipated
construction, development, or acquisition. Additional information concerning
potential risk factors that could affect the company's future performance are
described from time to time in the company's reports filed with the Securities
and Exchange Commission, including the company's Annual Report on Form 10-K for
the year ended December 31, 2001 and the company's Quarterly Reports on Form
10-Q for the quarters ending March 31, 2002, June 30, 2002 and September 30,
2002. These reports may be viewed free of charge at the following website:
www.sec.gov . The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information, future
events, or otherwise.
SOURCE Simon Property Group, Inc.
Maureen Crampton of Simon Property Group-Forum Shops at
Caesars, +1-702-893-3807; or Deborah Munch of Park Place Entertainment-Caesars
Palace, +1-702-699-5008; or David Kirvin or Leslie Altemus of Kirvin Doak