INDIANAPOLIS, May 5 /PRNewswire-FirstCall/ -- Simon Property Group (NYSE: SPG) announced proceeding with the construction of Coconut Point today, green-lighting a much-anticipated 166-acre, mixed-use project in Estero/Bonita Springs, Florida, in one of the country's fastest-growing areas -- the west coast of Florida halfway between Ft. Myers and Naples.

Coconut Point is a 500-acre community jointly planned and permitted by Oakbrook Properties and Simon. The Town Center will be the highlight of Coconut Point's retail offerings with 1.2 million square feet of open-air retail space. In addition to retail, the Town Center will include 90,000 square feet of office condominiums, 200-400 residential units, and one or two hotels.

"Coconut Point will truly be one of our signature properties," said Thomas J. Schneider, executive vice president of development at SPG. "The combination of high-end retail and residential in an attractive setting will make Coconut Point a memorable shopping experience, whether our guest is a full-time resident, seasonal resident or tourist."

There are three distinct areas of the Town Center -- the Community Center, the Lakefront, and the Village.

Dillard's, Barnes & Noble, a Muvico 20-screen megaplex theater, and four restaurants will anchor the Village.

"Dillard's is tremendously proud to join the new Coconut Point project," said William Dillard, II, chief executive officer of Dillard's, Inc. "We believe Simon's innovative concept for Coconut Point brings together a truly compelling mix of great retailers and favorite restaurant and entertainment choices in a unique new village setting. We are certain Coconut Point will be the premier place for area Floridians to shop, live and work. Our new Dillard's store will reflect the excitement of Coconut Point."

Muvico's megaplex will consist of 93,000 square feet and be unique to the area. "We're very excited about developing this 20-screen megaplex theater at Coconut Point," said Hamid Hashemi, president of Muvico Theaters. "With our high level of guest service and innovative amenities that we build into every theater and Simon's vision for the project, I have no doubt that Muvico at Coconut Point will quickly become a regional entertainment attraction."

In all there will be approximately 100 stores in The Village. Commitments have already been received from Bath & Body Works, Brookstone, Express and Express Men, Finish Line, Jos. A. Banks, Talbots, and Victoria's Secret.

Tenants who have expressed strong interest in The Village include Abercrombie & Fitch, Aeropostale, Ann Taylor Loft, Apple, Baby Gap, Casual Corner, Elizabeth, Gap Maternity, Gymboree, Hollister, J. Jill, Johnny Rockets, Petite Sophisticate, Select Comfort, Sigrid Olsen, Sur La Table, and Williams-Sonoma.

The Village will incorporate two parks and many casual gathering spots. It will be oriented around a Main Street designed by world-renowned architects, The Jerde Partnership of Venice, CA, and will feature a Mediterranean theme.

Above the retail on the west side of Main Street will be approximately 35,000 square feet of office space, some of which will be sold as condominiums/office and other space that will be leased. All will have balconies overlooking Main Street.

Above the retail on the east side of Main Street will be 200 to 325 luxury condominium units. This residential component of Coconut Point will include a clubhouse and pool, which will be visible from various points along Main Street.

Groundbreaking for The Village is scheduled for summer 2005 with a planned opening in September 2006.

The Community Center of Coconut Point will feature approximately 40 stores. Best Buy, Sports Authority, Bed Bath & Beyond, Ross Dress for Less, Designer Shoe Warehouse, PetsMart, Old Navy, OfficeMax, Pier I Imports, and Ulta Cosmetics are just some of the top retailers who have committed to The Community Center, which is scheduled to open in October 2005.

The Lakefront of Coconut Point serves as the transition area between The Village and The Community Center, but it will be a destination of its own. Restaurants and shops will surround an 18-acre lake. Negotiations with top restaurants such as Brio, California Pizza Kitchen, Cameron Mitchell Seafood, Champps Americana, Claddagh Irish Pub and Kona Grill are currently taking place.

"Our customers like our properties and they want to spend more time at them," said SPG's Schneider. "Providing a number of fine, sit-down dining options allows that to happen."

Richard S. Sokolov, SPG's president and COO summed up the project by saying, "Each of the components of the Coconut Point Town Center represents our best thinking relative to the creation of a mixed-use, 'Main Street' environment. We think the community is going to be excited with the design and proud to bring their guests to Coconut Point."

Simon Property Group, Inc. (NYSE: SPG), headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development 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 247 properties in North America containing an aggregate of 192 million square feet of gross leasable area in 37 states plus Canada and Puerto Rico. The Company also holds interests in 48 assets in Europe (in France, Italy, Poland and Portugal). Additional Simon Property Group information is available at www.simon.com .

SOURCE Simon Property Group

/CONTACT: Les Morris of Simon Property Group, +1-317-263-7711/