Simon, SZITIC CP and MSREF Join Forces to Develop Retail in China
INDIANAPOLIS, SHENZHEN, China and HONG KONG, July 25 /PRNewswire-
FirstCall/ -- Simon Property Group, Inc. (NYSE: SPG), America's largest owner,
developer and manager of retail real estate, has signed a Co-operation
Framework Agreement with the Morgan Stanley Real Estate Funds ("MSREF") and
SZITIC Commercial Property Co. Ltd ("SZITIC CP"), retail property subsidiary
of the Chinese state-owned trust and investment firm, Shenzhen International
Trust & Investment Co., Ltd ("SZITIC"), to develop retail shopping center
projects in China. Simon and MSREF will each own 32.5% of the enterprise
while SZITIC CP will own 35%.
Each project will be an urban, multi-level, retail destination of between
40,000 sq. m and 70,000 sq. m (430,000 and 750,000 sq. ft.), anchored in all
cases by a Wal-Mart store. Warner Theaters may also be an anchor tenant in
some of the projects. SPG and MSREF will be the preferred partners of SZITIC
CP for each project that SZITIC CP proposes to develop in the Yangzte River
delta, which includes the cities of Shanghai, Nanjing and Hangzhou.
The venture's first project will be a 46,000 sq. m (500,000 sq. ft.) mall
in Hangzhou, a historic city of six million people located two hours from
Shanghai. Construction is scheduled to commence in October with an expected
completion date in spring 2007. More than 12 potential projects have been
identified, and if the parties proceed with development those projects will
comprise a total area of approximately 750,000 sq. m (8,000,000 sq. ft).
"We are very excited about the retail development opportunities in China,"
said David Simon, CEO of Simon Property Group, "and we believe that being the
first U.S.-domiciled REIT to enter this critical 21st century market further
solidifies our position as one of the world's preeminent retail real estate
companies." Being a pioneer is nothing new to SPG. Simon noted that SPG was
one of the first U.S. retail REIT's to develop projects in France, Poland, and
Italy and today has interests in 52 European shopping centers with additional
projects under development.
Mr. Li Nanfeng, Chairman of SZITIC and SZITIC CP, said, "We are confident
in the outlook for China's emerging retail property market and delighted to be
working alongside such experienced partners as Simon and MSREF. We believe
that our complementary strengths will allow us to develop successful landmark
shopping and entertainment destinations for local communities."
Head of MSREF Asia, Sonny Kalsi, said, "MSREF looks forward to working
with SZITIC CP and Simon on this important initiative."
Ben Cornish, Vice President of Development for Wal-Mart in China
commented, "Wal-Mart China is extremely excited to have a world-class retail
developer like Simon entering the China market and working with us on our
aggressive expansion program throughout the country. The joint venture
between Simon, Morgan Stanley and SZITIC will add an entirely new level of
mall development and management expertise to the China retail landscape. Wal-
Mart China is proud to be associated with these fine companies and looks
forward to working with them in the future."
SZITIC's Mr. Li Nanfeng added that the cooperation "has a real competitive
advantage within China as it brings together the key elements to successful
retail property development, namely local insight and experience, a strong
development and investment capability, a stable core tenant base and an
outstanding management team."
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a
real estate investment trust engaged in the ownership, development and
management of retail real estate, primarily regional malls, Premium Outlet(R)
centers and community/lifestyle centers. The Company's current total market
capitalization is approximately $39 billion. Through its subsidiary
partnership, it currently owns or has an interest in 294 properties in the
United States containing an aggregate of 201 million square feet of gross
leasable area in 40 states plus Puerto Rico. Simon also holds interests in 52
European shopping centers in France, Italy, Poland and Portugal; 5 Premium
Outlet centers in Japan; one Premium Outlet center in Mexico; and one shopping
center in Canada. Additional Simon Property Group information is available at
SZITIC CP is a retail property development company, established by SZITIC
to coordinate with Wal-Mart's rapid development in China. SZITIC is a
shareholder in Wal-Mart SZITIC Department Store Co., Ltd. With rich
experience in site selection, project design and property development, SZITIC
CP has 18 centers completed or under construction with a total leasable area
of 750,000 sq. m (8,000,000 sq. ft).
Morgan Stanley Real Estate is comprised of three major global businesses:
Investing, Banking, and Lending. Since 1991, Morgan Stanley has acquired more
than $67.7 billion of real estate assets worldwide and currently manages $36.2
billion in real estate assets on behalf of its clients. Using its own
capital, Morgan Stanley also originates upwards of $11 billion in commercial
mortgages annually. In addition, Morgan Stanley Real Estate provides a
complete range of investment banking services including merger, acquisition
and restructuring advisory and recapitalizations, as well as public and
private debt and equity financing. Morgan Stanley established its real estate
organization in 1969. With more than 600 offices in 28 countries, Morgan
Stanley (NYSE: MWD) is a global financial services Firm and a market leader in
securities, investment management, and credit services.
SOURCE Simon Property Group, Inc.
CONTACT: Les Morris of Simon Property Group, +1-317-263-7711,
email@example.com ; Linxiong Zhong of SZITIC Commercial Property,
firstname.lastname@example.org ; or Nick Footitt of Morgan Stanley Asia
Pacific, 852 2848 6847/