Shares of the Simon Property Group, Inc. (SPG) gained 0.36% during the regular trading session on the NYSE on Aug 15, following the disclosure of opening celebration of Twin Cities Premium Outlets in the greater Minneapolis-St. Paul metropolitan area.
Twin Cities Premium Outlets, serving the twin cities metro area, is a joint venture development of Simon Property and Paragon Outlet Partners. The property is situated at the intersection of Highway 13 and Highway 77 in Eagan, MN and offers 409,000 square feet of retail space. This upscale shopping center boasts over 100 outlets stores, comprising famous retailers such as Michael Kors Holdings Limited (KORS), White House l Black Market, Coach, Inc. (COH), Nike, Inc. (NKE) and Calvin Klein.
Apart from operating as a shopping destination, Twin Cities Premium Outlets contributes to the economic development of the region by providing over 400 construction-related and 1,600 permanent and part-time jobs.
We expect this strategic property to drive growth for Simon Property and help augment its top line. With the economy showing signs of recovery, spending capability of the richer consumers is improving. Hence, the company has been active in capitalizing on growth opportunities in top markets worldwide, with special focus on enhancing its Premium Outlets portfolio.
Recently, Simon Property broke ground for a multi-million dollar project – Gloucester Premium Outlets – in New Jersey, which is slated to open in 2015 summer (Read: Simon Property Breaking Ground for NJ Premium Outlets). We believe that this growth in premium outlets property count would help the company to leverage on this rise in the richer class consumerism. As a matter of fact, this retail real estate investment trust (:REIT) currently has 83 Premium Outlet Centers across the world.
Presently, Simon Property carries a Zacks Rank #3 (Hold).