|Simon Property Group Secures Terrorism Insurance for Entire Portfolio of Shopping Centers|
|INDIANAPOLIS, Mar 27, 2002 /PRNewswire-FirstCall via COMTEX/ -- Simon Property
Group, Inc. ("the Company") (NYSE: SPG) announced today that it has purchased
two stand-alone policies of terrorism insurance, each with $100,000,000
aggregate limits. The first policy will insure Mall of America in Bloomington,
Minnesota against damage incurred from acts of terrorism. The second policy will
insure the remainder of Simon's shopping center portfolio against similar
The policies were purchased from Lexington Insurance Company, a subsidiary of American International Group. The procurement of these policies for the balance of 2002 successfully settles the Company's dispute with GMAC Commercial Mortgage Corporation, which had been the subject of litigation in the Fourth Judicial District Court in Hennepin County, Minnesota.
"We are pleased that we were able to successfully negotiate an acceptable premium for terrorism insurance with Lexington Insurance Company," said David Simon, the Company's chief executive officer. Mr. Simon noted that the premium for the terrorism insurance coverage is substantially less than that which GMAC originally intended to impose on the owners of Mall of America, which include Simon Property Group, Teachers Insurance and Annuity Association and Triple Five Corporation.
"It was extremely important that we secure coverage that would provide protection for our properties but not impose an unreasonable burden on our malls' tenants, many of whom are small business owners," he added.
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a self-administered and self-managed real estate investment trust which, through its subsidiary partnerships, is engaged in the ownership, development, management, leasing, acquisition and expansion of income-producing properties, primarily regional malls and community shopping centers. It currently owns or has an interest in 251 properties containing an aggregate of 187 million square feet of gross leasable area in 36 states and seven assets in Europe and Canada. Together with its affiliated management company, Simon owns or manages approximately 192 million square feet of gross leasable area in retail and mixed-use properties. Shares of Simon Property Group, Inc. are paired with beneficial interests in shares of stock of SPG Realty Consultants, Inc. Additional Simon Property Group information is available at www.shopsimon.com .
SOURCE Simon Property Group, Inc.
Copyright (C) 2002 PR Newswire. All rights reserved.