Simon Taubman to buy shopping centre specialist in $3.6bn deal

Simon Property Group is to take control of mall owner Taubman Centers in a $3.6bn cash deal, the US firms announced on Monday.

Simon Property, a real estate investment trust, has agreed to pay $52.50 a share in cash to acquire all of Taubman Centers’ common stock. At the same time, the Taubman family will sell a third of its interest at the same price.

Once complete, Simon Property will own 80% of Taubman and the Taubman family the remaining 20%.

David Simon, chairman, chief executive and president of Simon Property, said. "By joining together, we will enhance the ability of [Taubman] to invest in innovate retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers, and substantial new job prospects."

Robert Taubman, chairman, chief executive and president of Taubman, added: "Since Taubman Centers’ founding 70 years ago, we have built a portfolio of high-quality assets and continuously adapted to the evolving retail landscape.

"Simon shares our commitment to serving retailers, shopping and the communities in which we operate."

Taubman Centers said the deal would deliver a "significant, immediate cash premium to shareholders" and was a "great outcome" for all stakeholders.

Taubman owns 24 shopping centres, 21 of which are in the US and three in Asia, covering a combined 25 million feet of gross leasable area. They will continue to be managed by the existing management team, which is led by Robert Taubman, in partnership with Simon.

Simon will fund the deal’s cash consideration of approximately $3.6bn through existing liquidity, the firm confirmed. The deal is expected to close in mid-2020.