By Angela Chen
Simon Property Group said it may seek to boost its stake in
mall-developer Macerich Co., a move in line with its focus on
higher-end retail properties after spinning off its portfolio of
smaller malls.
Simon, which has accumulated a 3.6% stake in the company this
year, said it may ask Macerich to waive its excess share provision,
which restricts shareholder ownership of more than 5%. It said
Macerich recently waived the provision for another investor who
acquired an 10.9% stake.
That stake was acquired by the Ontario Teachers' Pension Plan
Board as part of a deal under which Macerich bought out its 49%
stake in five malls. The deal closed Tuesday.
Macerich, which owns 53 U.S. malls and has worked on large
projects such as the redevelopment of California's Santa Monica
Place mall, said Monday that it would partner with national
home-builder Lennar Corp. to develop a 500,000 square-foot
luxury-outlet mall in San Francisco's Candlestick Point. Macerich
has in recent years opened luxury outlet malls including Fashion
Outlets of Chicago and Fashion Outlets of Niagara Falls.
Simon completed the spinoff of its strip centers and smaller
enclosed malls into an independent, publicly traded real-estate
investment trust called Washington Prime Group Inc. in late May.
The company's occupancy and sales-per-square-foot rates have
improved since the spinoff was completed, and its revenue climbed
in its latest quarter.
Write to Angela Chen at angela.chen@dowjones.com
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