Simon Property Group has tapped real estate executive Mark Ordan to head a planned spinoff of its smaller enclosed shopping centers and strip shopping centers, called Washington Prime Group. Ordan has served as CEO of Sunrise Senior Living and CEO of Mills Corp. Simon Property's strip-center assets deliver 3.3% of the REIT's overall net operating income. Simon Property executives have said they believe that as an independent unit, the new REIT can better target acquisitions and development.
Simon Property Group posted an increase in second-quarter funds from operations and raised its FFO forecast for 2013. Driving this growth has been the REIT's push to renovate its U.S. centers and develop new shopping centers overseas.
Simon Property Group has formed a joint venture with Institutional Mall Investors to own and operate two retail properties, one in Illinois and one in California. Each company has a 50% stake in the venture. The properties are Woodfield retail center and The Shops at Mission Viejo.
Simon Property Group has been steadily moving one of its star property managers from asset to asset. Now, Kurt Webb has been assigned to the REIT's retail center in Tacoma, an important property.
"As you climb the ladder of (Simon) malls, Tacoma is near the top," Webb says.
Simon Property Group, Woodmont Outlets and EWB Development are creating a joint venture to build and manage St. Louis Premium Outlets in Chesterfield, Mo. Simon Property will have a 60% ownership stake in the 55-acre project.