Simon, a leading real estate investment trust known for owning premier shopping, dining, entertainment, and mixed-use destinations, has completed the acquisition of the remaining 12% interest in The Taubman Realty Group Limited Partnership (TRG) that it did not previously own. The transaction was finalized through the issuance of 5.06 million limited partnership units in Simon Property Group L.P.
The move gives Simon full ownership of TRG, marking the culmination of a five-year partnership between the two companies. The acquisition aims to further strengthen Simon’s position in the premium retail real estate sector, while enhancing its operational capabilities and shareholder value.
David Simon, Chairman, Chief Executive Officer, and President of Simon, emphasized that the deal will contribute to the company’s growth strategy by focusing on high-quality assets and operational efficiencies. He also noted that the acquisition is expected to be accretive to Simon’s earnings and improve long-term returns for shareholders.
The partnership between Simon and Taubman began in 2020, when Simon acquired an 80% stake in TRG. With this latest transaction, the REIT consolidates complete ownership of the company founded by the late Alfred Taubman in 1950. The Taubman family, including Robert and Billy Taubman, will continue as significant Simon shareholders following the closing of the deal.
KEY QUOTES:
“We are pleased to finalize this transaction, which will be accretive to Simon. This acquisition aligns with our strategy of owning high-quality assets, unlocking operational synergies and driving further innovation. With full ownership of TRG, we are well-positioned to capitalize on new growth opportunities, increase net operating income and deliver long-term returns to our shareholders.”
David Simon, Chairman, Chief Executive Officer and President, Simon
“I would like to thank Bobby and Billy Taubman, and the entire TRG team, for our successful partnership over the last five years.”
David Simon, Chairman, Chief Executive Officer and President, Simon
“I want to thank everyone at Taubman, present and past, for their contributions to our success over the 75 years since our founding by my father Alfred. I also want to thank David and his team for our wonderful partnership over the past five years. With this transition, Billy and I look forward to being significant Simon shareholders for many years to come.”
Robert Taubman, Chairman and Chief Executive Officer, Taubman Realty Group
