|Ivanhoe Cambridge Partners With Simon Property Group in Europe Through Acquisition of Interest in ERE|
INDIANAPOLIS, Oct 21, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Simon Property Group, Inc. (NYSE: SPG) ("Simon") and Ivanhoe Cambridge Inc. ("Ivanhoe Cambridge") announced today that Ivanhoe Cambridge has acquired an ownership interest in European Retail Enterprises ("ERE"), a European joint venture in which Simon has an interest. ERE owns Groupe B.E.G. ("BEG"), a Paris-based developer, owner and manager of retail properties with over 40 years of experience in France, Italy, Poland, Portugal, Spain and Turkey.
Ivanhoe Cambridge acquired the 39.5% interest in ERE previously held by another institutional investor. Simon currently owns a 34.7% interest in ERE, with the remaining interest owned by founders of Groupe B.E.G. In the future, Simon and Ivanhoe Cambridge will equalize their ownership positions in ERE through the purchase of additional interests from the company's founders.
Simon and Ivanhoe Cambridge will have equal representation on ERE's board of directors. Hans Mautner, President of Simon's International Division and Chairman of Simon Global Limited, will continue to serve as Chief Executive Officer of ERE.
"We are very pleased that Ivanhoe Cambridge, an astute and sophisticated global real estate owner, manager, developer and investor, is our new partner in ERE," said David Simon, Chief Executive Officer of Simon Property Group. "This transaction validates the value creation that has occurred in the ERE/BEG portfolio, and also gives the entity stable ownership to pursue its exciting development pipeline."
"Ivanhoe Cambridge is delighted to partner with Simon Property Group, a world-class shopping center company. We look forward to having a long-term relationship with this seasoned industry leader," said Rene Tremblay, President and Chief Executive Officer of Ivanhoe Cambridge. "This transaction marks yet another step in Ivanhoe Cambridge's strategy to diversify geographically and expand our portfolio and network in Europe. It is also an excellent opportunity to invest in an established platform with considerable growth potential. With its strong team of professionals and the shareholders' support, we are confident that ERE will create significant value for Ivanhoe Cambridge and its shareholders."
About Simon Property Group, Inc.:
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 $38 billion. Through its subsidiary partnership, it currently owns or has an interest in 296 properties in the United States containing an aggregate of 202 million square feet of gross leasable area in 40 states plus Puerto Rico. Simon also holds interests in 51 European shopping centers in France, Italy and Poland; 5 Premium Outlet(R) centers in Japan; and one Premium Outlet(R) center in Mexico. Additional Simon Property Group information is available at http://www.simon.com .
About Ivanhoe Cambridge:
Ivanhoe Cambridge is a recognized leader in the Canadian real estate industry. It is one of the country's pre-eminent property owners, managers, developers and investors and focuses on high-quality shopping centers located in urban areas. Headquartered in Montreal, Quebec, Ivanhoe Cambridge is active in Canada, the United States and Europe, where it recently completed several major transactions. In Germany, it owns a majority interest in Leipzig's Paunsdorf Center and Zwickau's Zwickau Arcaden, two existing shopping centers, and has an interest in Berlin's Wilmersdorfer Arcaden, a center currently being developed. In Scotland, it co-owns St. Enoch Center in Glasgow. In Poland, it owns the Wola Park shopping center through the Central European Retail Property Fund, of which it is the controlling shareholder. In Spain, the Company is currently working with a local partner to develop Islazul Centro Comercial, a 970,000-square-foot regional shopping center located in suburban Madrid.
The Company's real estate portfolio consists of 43 regional and super- regional shopping centers for a total of 37 million square feet of retail space. As at December 31, 2004, the market value of its assets stood at CAD$7.0 billion.
Ivanhoe Cambridge is a principal real estate subsidiary of the Caisse de depot et placement du Quebec, the leading institutional fund manager in Canada. Amongst its shareholders, the Company also counts four prominent Canadian pension funds. The Company's website is http://www.ivanhoecambridge.com .
ERE, through BEG, its wholly-owned subsidiary, is a full-service developer, manager and owner of retail properties in Europe with significant experience in site selection, permitting, design, engineering, construction, finance, leasing, marketing and property management. Over the past forty years, BEG has been involved in the development of projects in France, Italy, Poland, Portugal, Spain, and Turkey. It currently owns interests in 11 retail properties comprising over 4.2 million square feet of retail space in France, Poland and Portugal, including Eastern Europe's largest shopping center, Arkadia, located in Warsaw, Poland. The company also has several projects currently under development including opportunities in Marseilles, Poissy and Toulouse, France.
SOURCE Simon Property Group, Inc.
At Simon Property Group, Inc.