The transaction, valued at $2.325 billion, includes the assumption of Prime Outlets’ existing indebtedness and preferred stock.
Under the terms of the agreement, Simon will pay equity consideration of approximately $700 million for the owners’ interests in Prime Outlets, according to a news release.
Chelsea Property Group, a Simon division, owns and operates the Cincinnati Premium Outlets in Monroe, which opened in August.
The Prime Outlets portfolio includes 22 outlet centers such as the 410,000-square-foot Prime Outlets Jeffersonville, in Fayette County between Cincinnati and Columbus.
As of June 30, Prime Outlets’ centers were 92 percent occupied and generated annual sales per square foot of approximately $370, according to a news release.
Consumers shouldn’t notice any change in business as they shop at the stores. Details on what is planned for each of the mall locations are not being released and will not become clear until the deal is finalized. The acquisitions agreement is expected to close late in the first quarter 2010 or early in the second quarter, said Les Morris, director of public relations for Simon.
“Operationally there is nothing we can say at this point. Today was just the announcement of entering into the definitive agreement. But it’s a good deal for Simon and we are excited to add Prime Outlets to our portfolio,” Morris said.