Some better-ranked stocks from the retail REIT sector are STORE Capital STOR, Kite Realty Group Trust KRG and Tanger Factory Outlet Centers SKT, each carrying a Zacks Rank #2 (Buy). Shares of this Zacks Rank #3 (Hold) company have gained 28.8% in the quarter-to-date period compared with its industry’s growth of 15.4%. With a solid balance-sheet position and ample financial flexibility, SPG is well-positioned to capitalize on long-term growth opportunities. Investments in them seem strategic for Simon Property as the brands have been generating a decent amount from digital sales. In June 2022, SPG acquired an additional interest in Gloucester Premium Outlets from a joint venture partner for $14 million in cash consideration, including a pro-rata share of working capital, resulting in the consolidation of this property.Īdditionally, Simon Property has been exploring the mixed-use development option, which has gained immense popularity in recent years as it helps capture the attention of people who prefer to live, work and play in the same area.įurthermore, it capitalized on purchasing recognized retail brands in bankruptcy. Simon Property has been focusing on premium acquisitions and transformative redevelopments to enhance its portfolio and has invested billions in transforming its properties over the past few years. Through the partnership, Simon Property will be able to drive its future densification projects with the help of Jamestown’s platform.Īlso, with an experienced fund manager and mixed-use operator and developer, SPG will have the scope to capitalize on the growing asset and investment management businesses. Jamestown is known to have a 39-year track record and had more than $13 billion of assets under management as of Jun 30, 2022.
The partnership seems a strategic fit for SPG as it anticipates its stake in Jamestown to be accretive to earnings.
In October 2022, Simon Property announced that it would acquire a 50% interest in Jamestown from the latter’s founding partners. Simon Property Group SPG recently completed its earlier announced strategic partnership with Jamestown, a global real estate investment and management firm.
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