SPG Begins to Build Charlotte Property
In tune with its strategy of expanding the Premium Outlets portfolio in upscale locations, Simon Property Group, Inc. (SPG) began developing the Charlotte Premium Outlets in North Carolina on Sep 20, 2013. This leading retail real estate investment trust (:REIT) initiated the project in a 50/50 joint venture with Tanger Factory Outlet Centers, Inc. (SKT).
Property Details
Charlotte Premium Outlets will be positioned at the intersection of I-485 and Steele Creek Road (NC Highway 160), the two major roads of the greater Charlotte area. Simon Property expects to open the first phase of the planned 400,000 square foot center in summer 2014. Post-completion, Charlotte Premium Outlets will feature above 90 premium outlet stores, including Saks Fifth Avenue OFF 5th – the signature brand of Saks Incorporated (SKS).
Moreover, the property is expected to drive economic development in the area, with the creation of many job positions. Notably, the above-mentioned asset will be Simon Property’s 2nd Premium Outlets Center in North Carolina, with after Carolina Premium Outlets.
Conclusion
Given the strategic location of Charlotte Premium Outlets in one of North Carolina’s highly productive areas, the above-mentioned transaction is a strategic fit. Moreover, this will enhance Simon Property’s top-line growth and boost the company’s upscale portfolio base.
Simon Property has been actively capitalizing on growth opportunities in fast-growing markets worldwide. In relation to that, last month, the company opened its third Premium Outlet Center – Busan Premium Outlets – in South Korea and its first Premium Outlet Center – St. Louis Premium Outlets – in Chesterfield. At present, Simon Property has 81 Premium Outlet Centers worldwide.
Simon Property currently carries a Zacks Rank #3 (Hold). Another well-performing retail REIT is Cedar Realty Trust, Inc. (CDR), which has a Zacks Rank #2 (Buy).
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