Simon Property Group and Farallon Capital Management Complete Acquisition of The Mills Corporation
April 06 2007 - 9:45AM
PR Newswire (US)
INDIANAPOLIS and SAN FRANCISCO, April 6 /PRNewswire-FirstCall/ --
Simon Property Group, Inc. (NYSE:SPG) ("SPG") and Farallon Capital
Management, L.L.C. ("Farallon"), announced that the acquisition of
The Mills Corporation (NYSE:MLS) ("The Mills") by SPG-FCM Ventures,
LLC, a joint venture between an entity owned by SPG and funds
managed by Farallon, was completed on April 3, 2007. The
acquisition was completed by means of a merger of a subsidiary of
SPG-FCM Ventures and The Mills, following the successful tender
offer for Mills common shares. On March 29, 2007, SPG and Farallon
announced that together with shares owned by funds managed by
Farallon, approximately 96.8% of the outstanding Mills common
shares had been tendered and were accepted for payment. In the
merger, all outstanding common shares of The Mills were converted
into the right to receive the same $25.25 in cash per share as paid
in the tender offer, without interest. David Simon, Chief Executive
Officer of SPG, said, "We are very pleased with the completion of
this transaction. The Mills portfolio of assets is an excellent
strategic fit with our existing retail platforms and presents a
compelling opportunity for SPG's stockholders and Farallon
investors. We believe that our significant experience operating
both regional malls and outlet centers, substantial resources,
previous ownership interest in certain Mills properties and history
of successful acquisitions, together with Farallon's financial
resources and expertise, will allow us to improve the performance
of these assets." Richard B. Fried, a Managing Member of Farallon,
said, "We are excited to partner with SPG, the leader in the retail
real estate industry, in the ownership of this portfolio. SPG's
operating expertise and experience in the redevelopment of retail
real estate, combined with our strong financial support, should
result in meaningful improvement in the operations and cash flow of
these assets." The Mills portfolio is comprised of two distinctive
types of assets -- 20 regional malls and 17 traditional Mills
properties -- totaling over 45 million square feet of gross
leasable area. A traditional Mills property typically comprises
well over one million square feet of gross leasable area and has a
combination of traditional mall, outlet center and big box
retailers and entertainment uses, all focused on delivering value
for the consumer. These assets are well-located in major
metropolitan markets, have considerable consumer brand equity and
large trade areas, and generate significant total sales volumes.
SPG has assumed management responsibilities for the Mills portfolio
of assets. SPG will integrate management and administrative support
functions of the Mills regional malls into its existing 172
regional mall portfolio. The 17 traditional Mills properties will
be operated as a separate retail real estate platform. This
platform will be directed by J. Scott Mumphrey, an SPG executive
vice president with 27 years of experience within the organization.
The Mills platform will be managed and leased from an office in the
Washington, D.C. area, with administrative support functions
performed in SPG's corporate headquarters. All shares of the
various series of The Mills Corporation preferred stock remain
outstanding following the merger with their terms unchanged. It is
currently expected that within the next few months, the holders of
Mills preferred shares will receive liquidation payments. SPG-FCM
Ventures, LLC anticipates the refinancing of the Mills' Senior Term
Credit Facility and the debt of several individual Mills properties
over the next few months. About Simon Property Group Simon Property
Group, Inc., an S&P 500 company 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 Centers(R) and
community/lifestyle centers. The Company's current total market
capitalization is approximately $56 billion. Through its subsidiary
partnership, it currently owns or has an interest in 324 properties
in the United States containing an aggregate of 245 million square
feet of gross leasable area in 41 states plus Puerto Rico. Simon
also owns interests in 53 European shopping centers in France,
Italy, and Poland; 5 Premium Outlet Centers in Japan; and one
Premium Outlet Center in Mexico. Additional Simon Property Group
information is available at http://www.simon.com/. Simon Property
Group, Inc. is publicly traded on the NYSE under the symbol SPG.
About Farallon Capital Management, L.L.C. Farallon Capital
Management, L.L.C. ("Farallon") is a global, San Francisco-based
investment management company that manages discretionary equity
capital of more than $26 billion, largely from institutional
investors such as university endowments, foundations, and pension
plans. Farallon was founded in March 1986 by Thomas F. Steyer.
Farallon invests in public and private debt and equity securities,
direct investments in private companies and real estate. Farallon
invests in real estate across all asset classes around the world,
including the United States, Europe, Latin America and India. More
information about Farallon may be found at
http://www.faralloncapital.com/. Forward-Looking Statements This
release contains some forward-looking statements as defined by the
federal securities laws which are based on our current expectations
and assumptions, which are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those anticipated, projected or implied. We undertake no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
DATASOURCE: Simon Property Group, Inc. CONTACT: Investors, Shelly
Doran, +1-317-685-7330, or Media, Les Morris, +1-317-263-7711 Web
site: http://www.simon.com/ http://www.faralloncapital.com/
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