Simon Enters Into Definitive Agreement To Jointly Own and Operate Gateway Shopping Centers
INDIANAPOLIS, Dec. 23 /PRNewswire-FirstCall/ -- Simon Property Group, Inc.
(NYSE: SPG) and SMP Interests, Inc. announced today that they have entered
into a definitive agreement to jointly own and operate the Gateway Shopping
Centers in Austin, Texas. This transaction, which is subject to customary
closing conditions, is expected to be completed in the first quarter of 2004.
The Gateway Shopping Centers are a 484,000 square-foot complex consisting
of Gateway Square, Gateway Market, Gateway Courtyard, and Gateway Cinema.
Gateway is located at the confluence of Mo-Pac Expressway (Loop 1), Research
Boulevard (Highway 183), and Capital of Texas Highway (Loop 360) -- three of
the major arterial roads in Austin. It is located across from The Arboretum, a
200,000 square foot high-end specialty retail center owned by Simon, and near
the planned Shops at Arbor Walk, to be developed by Simon on land owned by the
University of Texas. These three centers will give Simon a powerful presence
in this important consumer area of Austin.
Gateway is anchored by Whole Foods, REI, Regal Cinema, Best Buy, Linens N
Things, The Container Store, Comp USA, Star Furniture and Old Navy. The
legendary homeware retailer Crate & Barrel is scheduled to open a 35,000
square foot, two-story store at Gateway. Crate & Barrel projects a late 2004
"We are very excited to add Gateway Shopping Center to our Austin
holdings," said Myles Minton, senior vice president of SPG. "Simon Property
Group has a significant interest in the Austin market and Gateway is another
prime property for us in Central Texas." Simon will assume leasing, management
and development responsibility for Gateway upon closing.
Mark Palmer, president and founder of SMP Interests, Inc. developed
Gateway Shopping Centers in phases from 1993 to 1996. Mr. Palmer has continued
to improve and upgrade the property since then. It is currently 99% leased and
has enjoyed an average historical occupancy over the past five years of 95%.
"By partnering with someone as strong as Simon Property Group," Palmer
said, "we believe Gateway Shopping Centers can improve and expand to its
fullest potential over time."
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 245 properties containing an aggregate of 190
million square feet of gross leasable area in 37 states. The Company also
holds interests in nine assets in Europe and Canada and ownership interests in
other real estate assets. In Austin, SPG owns the Lakeline Mall, Barton Creek
Square, The Arboretum, as well as an interest in Highland Mall. Additional
Simon Property Group information is available at www.simon.com .
SOURCE Simon Property Group, Inc.
CONTACT: Les Morris of Simon Property Group, +1-317-263-7711; or Mark
Palmer of SMP Interests, Inc., +1-512-418-1144/