Simon Property Group and Farallon Capital Management Complete Acquisition of The Mills Corporation
INDIANAPOLIS and SAN FRANCISCO, April 6 /PRNewswire-FirstCall/ -- Simon
Property Group, Inc. (NYSE: SPG) ("SPG") and Farallon Capital Management,
L.L.C. ("Farallon"), announced that the acquisition of The Mills Corporation
(NYSE: MLS) ("The Mills") by SPG-FCM Ventures, LLC, a joint venture between an
entity owned by SPG and funds managed by Farallon, was completed on April 3,
2007. The acquisition was completed by means of a merger of a subsidiary of
SPG-FCM Ventures and The Mills, following the successful tender offer for
Mills common shares.
On March 29, 2007, SPG and Farallon announced that together with shares
owned by funds managed by Farallon, approximately 96.8% of the outstanding
Mills common shares had been tendered and were accepted for payment. In the
merger, all outstanding common shares of The Mills were converted into the
right to receive the same $25.25 in cash per share as paid in the tender
offer, without interest.
David Simon, Chief Executive Officer of SPG, said, "We are very pleased
with the completion of this transaction. The Mills portfolio of assets is an
excellent strategic fit with our existing retail platforms and presents a
compelling opportunity for SPG's stockholders and Farallon investors. We
believe that our significant experience operating both regional malls and
outlet centers, substantial resources, previous ownership interest in certain
Mills properties and history of successful acquisitions, together with
Farallon's financial resources and expertise, will allow us to improve the
performance of these assets."
Richard B. Fried, a Managing Member of Farallon, said, "We are excited to
partner with SPG, the leader in the retail real estate industry, in the
ownership of this portfolio. SPG's operating expertise and experience in the
redevelopment of retail real estate, combined with our strong financial
support, should result in meaningful improvement in the operations and cash
flow of these assets."
The Mills portfolio is comprised of two distinctive types of assets -- 20
regional malls and 17 traditional Mills properties -- totaling over 45 million
square feet of gross leasable area. A traditional Mills property typically
comprises well over one million square feet of gross leasable area and has a
combination of traditional mall, outlet center and big box retailers and
entertainment uses, all focused on delivering value for the consumer. These
assets are well-located in major metropolitan markets, have considerable
consumer brand equity and large trade areas, and generate significant total
SPG has assumed management responsibilities for the Mills portfolio of
assets. SPG will integrate management and administrative support functions of
the Mills regional malls into its existing 172 regional mall portfolio. The 17
traditional Mills properties will be operated as a separate retail real estate
platform. This platform will be directed by J. Scott Mumphrey, an SPG
executive vice president with 27 years of experience within the organization.
The Mills platform will be managed and leased from an office in the
Washington, D.C. area, with administrative support functions performed in
SPG's corporate headquarters.
All shares of the various series of The Mills Corporation preferred stock
remain outstanding following the merger with their terms unchanged. It is
currently expected that within the next few months, the holders of Mills
preferred shares will receive liquidation payments.
SPG-FCM Ventures, LLC anticipates the refinancing of the Mills' Senior
Term Credit Facility and the debt of several individual Mills properties over
the next few months.
About Simon Property Group
Simon Property Group, Inc., an S&P 500 company 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 Centers(R) and community/lifestyle centers. The
Company's current total market capitalization is approximately $56 billion.
Through its subsidiary partnership, it currently owns or has an interest in
324 properties in the United States containing an aggregate of 245 million
square feet of gross leasable area in 41 states plus Puerto Rico. Simon also
owns interests in 53 European shopping centers in France, Italy, and Poland; 5
Premium Outlet Centers in Japan; and one Premium Outlet Center in Mexico.
Additional Simon Property Group information is available at www.simon.com.
Simon Property Group, Inc. is publicly traded on the NYSE under the symbol
About Farallon Capital Management, L.L.C.
Farallon Capital Management, L.L.C. ("Farallon") is a global, San
Francisco-based investment management company that manages discretionary
equity capital of more than $26 billion, largely from institutional investors
such as university endowments, foundations, and pension plans. Farallon was
founded in March 1986 by Thomas F. Steyer. Farallon invests in public and
private debt and equity securities, direct investments in private companies
and real estate. Farallon invests in real estate across all asset classes
around the world, including the United States, Europe, Latin America and
India. More information about Farallon may be found at
This release contains some forward-looking statements as defined by the
federal securities laws which are based on our current expectations and
assumptions, which are subject to a number of risks and uncertainties that
could cause actual results to differ materially from those anticipated,
projected or implied. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE Simon Property Group, Inc.
/CONTACT: Investors, Shelly Doran, +1-317-685-7330, or Media, Les Morris,