Simon Property Group Inc. plans to add to its Virginia holdings with an agreement to buy all the outlet shopping centers of Prime Outlets Acquisition Co., including a center in Williamsburg recentlty expanded. The transaction, which assumes Prime Outlets’ indebtedness and preferred stock, is valued at $2.3 billion.
The Prime Outlets’ portfolio includes 22 shopping centers in major metropolitan areas such as Washington, D.C., and popular tourist destinations such as the center in Williamsburg. According to Simon, the outlet centers were 92% occupied at the end of the second quarter and generated annual sales per square foot of about $370. Under the terms of the agreement, Simon will pay $700 million in cash for the owners’ interest in Prime Outlets.
The Prime Outlets chain was sold by its New York parent company, the Lightstone Group. Simon, based in Indianapolis, owns nearly 400 properties in the U.S., including Potomac Mills in Woodbridge and the Fashion Centre at Pentagon City.
Source: Virginia Business