|Type||Public (NYSE: SPG)|
|Genre||Malls, shopping centers, outlet malls|
|Founder(s)||Melvin, Herbert, and Fred Simon|
|Headquarters||Indianapolis, Indiana, U.S.|
|Number of locations||41 U.S. states plus Puerto Rico, Japan, China, South Korea, Mexico, France, Italy, and Poland|
|Industry||Real estate investment trusts|
|Revenue||▲ US$ 3.783 billion(2008)|
|Net income||▲ US$ 422.517 million (2008)|
|Total assets||▼ US$ 23.423 billion (2008)|
Simon Property Group, Inc. is an S&P 500 company and the largest public U.S. real estate company. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers, The Mills, community/lifestyle centers and international properties. It currently owns or has an interest in 387 properties comprising 263 million square feet of gross leasable area in North America, Europe and Asia. The Company is headquartered in Indianapolis, Indiana and employs more than 5,000 people worldwide. Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG.
Simon Property Group was formed in 1993 when the majority of the shopping center interests of Melvin Simon & Associates became a publicly traded company. Melvin Simon & Associates, owned by brothers Melvin Simon and Herbert Simon, had been founded in 1960 in Indianapolis, Indiana, and had long been one of the top shopping center developers in the United States.
In 1996 Simon DeBartolo Group was formed with Simon Property's merger with former rival DeBartolo Realty Corp. DeBartolo Realty had recently become a publicly traded company itself and encompassed the shopping mall interests of the Edward J. DeBartolo Sr. family, another leading developer. Simon DeBartolo rapidly acquired assets in the then fragmented industry, notably The Retail Property Trust and a group of properties held by IBM's pension plan in 1997 and Corporate Property Investors (CPI) in 1998. Following the CPI acquisition in 1998, the company announced it was reverting to its original name, Simon Property Group, as the DeBartolo family was resuming its private real-estate development operation, while retaining their interest in Simon.
Simon continued to be a prolific acquirer of shopping centers, including a portfolio from New England Development in 1999, several prime properties from Rodamco North America in 2002 (including Houston Galleria and SouthPark Mall), several high-profile properties such as Dadeland Mall, Fashion Valley Mall, Newport Centre Mall, Rockaway Townsquare Mall, and Stanford Shopping Center, and in 2004 Chelsea Premium Outlets. In 2003 Simon became a co-owner of The Kravco Company, which changed its name to Kravco Simon. On April 3, 2007, a partnership including Simon agreed to acquire the Mills Corporation.
On November 19, 2009, it was reported that Simon may acquire its main rival General Growth Properties, which is operating under Chapter 11 bankruptcy protection. Should GGP be acquired in its entirety, such deal may be worth up to $30 billion. Simon has hired property investment firm Cohen & Steers, as well as the Lazard investment bank and the Wachtell Lipton Rosen & Katz law firm to explore the possibility of acquiring GGP.
On February 16, 2010, Simon announced that it placed a bid on February 8 to acquire General Growth Properties in a deal worth $10 billion. However, the bid was rejected by General Growth twice during the week the bid was announced. On February 19, 2010, a shareholder filed a lawsuit (Young v. Bucksbaum) against GGP's board of directors for rejecting Simon's bid, accusing chairman John Bucksbaum and six other board members for breaching their fiduciary duty to GGP's investors.
Simon is known for its line of cobranded VISA gift cards campaigns associated with local malls, specific organizations, such as Purdue University or Boston Celtics, or upscale properties, such as King of Prussia Mall, Stanford Shopping Center and The Forum Shops at Caesars. In 2006, Simon signed an agreement with the Susan G. Komen for the Cure organization to create the "Simon Pink Ribbon Giftcard" to benefit breast cancer awareness efforts. From each gift card sold since Summer 2006 at select Simon malls, Simon donates $1 from the card's $3.95 handling fee to the Susan G. Komen for the Cure organization.
In October 2009, Simon introduced a line of co-branded Gift Cards from American Express. The advantage to the American Express product is that there are no fees after purchase and the funds do not expire unlike the VISA products which expire, have a charge to replace lost or stolen cards, and charge a monthly account fee if the card has a balance remaining at the beginning of the 13th month after purchase. The American Express line of cards was introduced by many other vendors following the lead of the Simon Group. The handling fee for the AMEX card is usually $2.95 which is the same as the VISA handling fee.
In January 2010 the Pink Ribbon Card was reissued through US Bank. Formerly they were issued through Metabank.
Several other "charitable campaign" cards are offered in some markets.
In October 2009, Simon introduced a line of co-branded Gift Cards from American Express. The advantage to the American Express product is that there are no fees after purchase and the funds do not expire unlike the VISA products which expire, have a charge to replace lost or stolen cards, and charge a monthly account fee if the card has a balance remaining at the beginning of the 13th month after purchase. The American Express line of cards was introduced by many other vendors following the lead of the Simon Group.