SPG Simon Property Group Inc

Chelsea, Unit of Simon, Forms Joint Venture With Shinsegae - Partnership to Develop Premium Outlet(R) Centers in South Korea - INDIANAPOLIS, April 19 /PRNewswire-FirstCall/ -- Chelsea Property Group, a wholly-owned subsidiary of Simon Property Group, Inc. (NYSE:SPG), announced today that it signed an agreement with Seoul-based Shinsegae Co., Ltd. and Shinsegae International Co., Ltd. (together, "Shinsegae") to jointly develop Premium Outlet(R) centers in South Korea. The joint venture, known as Shinsegae Chelsea Co., Ltd., will adapt Chelsea's Premium Outlet concept to the development of upscale, fashion- oriented outlet centers in South Korea. Chelsea will contribute leasing, design, marketing and operations expertise to the venture; Shinsegae will manage the venture's entitlement, development and construction activities. The partners have agreed to conduct premium outlet development and day-to-day management activities in South Korea exclusively through the joint venture. Chelsea and Shinsegae each have a 50% interest in the venture. Shinsegae Chelsea, to be headquartered in Seoul, will focus initially on developing a Premium Outlet center to serve the greater Seoul market. Details of the project are expected to be released within the next several months. Mr. Leslie Chao, President of Chelsea Property Group, said, "We are delighted to be joining with Shinsegae, South Korea's leading retailing company, to bring Premium Outlets to South Korea. Shinsegae's strong local development and retail expertise, combined with Chelsea's international outlet experience, should enable us to capitalize on opportunities in Seoul as well as other South Korean markets. Our goal is to develop outlet centers of the highest-quality possible by pooling our know-how in design, brand tenancy and consumer appeal." Mr. H.S. Koo, Chief Executive Officer of Shinsegae, said, "This joint venture comes at the end of a long period of pre-development dialogue, during which a great deal of confidence and mutual trust have been built between our two companies. We believe that the partnership between Chelsea and Shinsegae is a logical one, and we will work hard to ensure that the joint venture takes full advantage of the strengths that each partner brings." Shinsegae, a diversified retailer, is a market leader in South Korea. Since the completion of the first Shinsegae Department Store in 1929, the first department store ever to be constructed in South Korea, Shinsegae has grown rapidly and currently operates 7 department stores and 70 discount stores nationwide and 3 in China, with total revenue of more than $7.6 billion. Shinsegae International began its life as the international division of Shinsegae Department Store. In 1996, Shinsegae International Co., Ltd. separated from Shinsegae Department Store to further expand upon and specialize in its fashion business. Shinsegae International maintains its outstanding performance in sales and earnings by building on its leading position in two key segments -- imported fashion and apparel -- with 8 free- standing stores and 204 shop-in-shops. Chelsea Property Group is the world's largest owner and operator of manufacturers' outlet centers with interests in 60 Premium Outlet and other shopping centers -- containing 17.1 million square feet of GLA -- in 30 states, Japan and Mexico. The Company's leading properties include Woodbury Common Premium Outlets, near New York City; Orlando Premium Outlets in Orlando, Florida; Desert Hills Premium Outlets, near Palm Springs, California; Gotemba Premium Outlets, near Tokyo; Rinku Premium Outlets, near Osaka; and three other Japanese centers. Please see http://www.cpgi.com/ for more information. Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet(R) centers and community/lifestyle centers. The Company's current total market capitalization is approximately $36 billion. Through its subsidiary partnerships, it currently owns or has an interest in 296 properties in the United States containing an aggregate of 203 million square feet of gross leasable area in 40 states plus Puerto Rico. Simon also holds interests in 51 European shopping centers in France, Italy, Poland and Portugal; 5 Premium Outlet(R) centers in Japan; one Premium Outlet(R) center in Mexico; and one shopping center in Canada. Additional Simon Property Group information is available at http://www.simon.com/ . DATASOURCE: Simon Property Group, Inc. CONTACT: Karen Fluharty of Chelsea Property Group, +1-973-403-2592 Web site: http://www.simon.com/ http://www.cpgi.com/

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