Simon Property Paying $3.5B In 2 Real Estate Deals


Salon Staff
March 8, 2012 5:00PM (UTC)

INDIANAPOLIS (AP) — Simon Property Group Inc. is buying a minority stake in Paris-based real estate company Klépierre from BNP Paribas for about $2 billion in a move to expand its geographic reach.

The largest mall operator in the U.S. is also purchasing joint venture partner Farallon Capital Management LLC's interest in 26 U.S. shopping malls owned by The Mills LP for $1.5 billion.

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Simon Property said Thursday that it will pay 28 euros ($37.04) per share for about 54.4 million shares of Klépierre, which will make it Klépierre's biggest shareholder. Simon Property said it currently has no plans to buy additional shares of Klépierre.

Taking both transactions into account, Simon Property is now raising its 2012 funds from operations outlook above Wall Street's expectations.


Salon Staff

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