NEWS RELEASE
BLOOMFIELD HILLS, Mich., Jan. 31, 2014 /PRNewswire/ — Taubman Centers, Inc. (NYSE: TCO) (“Taubman”) today announced the completion of the sale of land owned by Taubman in Syosset, New York, and Taubman’s interest in Arizona Mills (Tempe, Ariz.) to Simon Property Group (NYSE: SPG) (“Simon”).
The consideration, excluding transaction costs, consisted of $60 million of cash and 555,150 partnership units in Simon Property Group Limited Partnership. The number of partnership units issued was determined based on a value of $154.91 per unit. As part of the sale, Taubman will be relieved of its $84 million share of the current $167 million mortgage loan on Arizona Mills, bringing the transaction’s total value to $230 million.
“Despite our best efforts and continuing enthusiasm for the opportunity, it became apparent that we were not going to be able to move forward anytime soon in Syosset with development of The Mall at Oyster Bay,” said Robert S. Taubman, chairman, president, and chief executive officer of Taubman Centers. “Given the excellent progress we are making with a number of other properties in our development pipeline, we are pleased to be able to redirect our resources at this time.” The Long Island property represents 39 acres of land and site improvements at the northeast corner of the Long Island Expressway (I-495) and Robbins Lane.
“In addition, the sale of our 50-percent interest in Arizona Mills allows us to recycle our capital and invest in our business,” said Mr. Taubman. Arizona Mills is located at the intersection of I-10 and U.S. 60 and is the largest outlet and value retail shopping destination in Arizona. The center, which opened in 1997, was developed in partnership by Taubman, The Mills Corporation, and Simon. Upon closing, Simon will own 100 percent of Arizona Mills.
