Ironically, department stores used to be the anchors in malls. The retail industry is right smack in the middle of a transformative era, particularly the legacy regional malls and department stores. Let me rephrase the question to an opinion. Does the acquisition of 50 percent of Jamestown signal a new era for all major legacy malls? SPG is the largest retail shopping center property company in the U.S., with around 241 million-square-feet under its management (Brookfield Properties, second in size with about 155 million-square-feet). In hindsight, I believe SPARC was a short-term tactic supporting a modicum of growth while he rolls out a long-term visionary strategy - transforming select malls to compelling 21 st Century mixed-use destinations. So, let me now tweak my assessment and give David Simon some serious credit. Whoa!!! What I didn’t foresee was SPG’s acquisition of 50 percent of Jamestown.
#Brands owned by simon property group full
Regardless, I suggest that Simon’s formation of SPARC and subsequent replacing JC Penney and mall vacancies with ABG’s brands, are in fact, short term tactics to find homes for ABG’s relatively stale brands, and for SPG to keep its malls as full as possible, for as long as possible.Īnd indeed in my article, I stated that this move, on its own, was a tactic that would sputter and collapse. Traffic, occupants’ performance, and percentage of occupancy are three that come to mind. In the enclosed mall business, it’s strong, yet we have naysayers out there that don’t believe it.” Our business is strong, growing - in the enclosed mall business.
However, he commented on an analysts call, “We have refuted ecommerce taking the malls down. So, is this move a sign that David Simon finally realizes that consumers, and particularly among the younger cohorts, are simply no longer interested in wasting time traveling to, browsing through, or even hanging out in cavernous, drab, and uninspired enclosed malls? Maybe so. Some examples include Ponce City in Atlanta a redevelopment of a former Sears catalog facility Ghirardelli Square in San Francisco and Constitution Wharf in Boston. While there are some well-performing enclosed SPG malls that will continue, perhaps with some experiential tweaking other select underperforming malls will likely require massive overhauls to convert them into the types of mixed-use properties that Jamestown has developed. I may now “eat crow.” Upon closing, Simon’s acquisition of a 50 percent stake in mixed-use developer Jamestown, indicates to me that David Simon, CEO of SPG, does envision a future of reimagined malls, transformed into mixed-use lifestyle centers.
#Brands owned by simon property group plus
One (loser), plus another, plus another, equals zero. By sticking a bunch of stale brands into Simon’s stale malls, including JC Penney, all of them might live another day or two. The only objective and strategy I could imagine, was really a short- term tactic. Today, many department stores have come to believe the malls they have been anchoring for years are in fact anchors around their necks preventing growth. In 2016, the company joined an ownership group that included General Growth Properties, now owned by Brookfield, to buy teen clothing brand Aéropostale Inc., for $243.3 million, according to reports published at the time.Ironically, department stores used to be the anchors in malls. This isn't the first time Simon has helped a purchasing group bail out a troubled retailer.
The locations at Circle Center Mall and Castleton Square Mall were not listed as possible closures, but stores in Carmel, Plainfield and Evansville were on the chopping block. The purchase expands Simon's retail footprint in the United States and Asia at a time when struggling retailers are routinely shuttering locations.īriggs: David Simon is betting $3.6 billion that you'll keep shopping at mallsįorever 21 filed for bankruptcy in September and said it would close up to 178 U.S. The acquisition of Forever 21 follows Simon's announcement earlier this month that it is buying rival Taubman Centers Inc. Brookfield will own 25% of Forever 21's intellectual property and operating business. Under the terms of the deal, both Simon and ABG, a brand development, marketing and entertainment company, will each own a 37.5% stake in the company.
Simon purchased the chain as part of an ownership group that includes New York City-based Authentic Brands Group (ABG) and Bermuda-based commercial real estate firm Brookfield Property Partners. Indianapolis-based Simon Property Group has acquired a stake in the bankrupt fast fashion retailer Forever 21, according to a deal finalized Wednesday. Watch Video: What we know about Simon Property Group
0 kommentar(er)
