MALL OWNERS SQUABBLE OVER HALTED MERGER

Simon Property Group, the U.S.’s largest mall owner with more than 200 retail properties, has walked away from its planned $3.6-billion purchase, announced in February, of Taubman Centers, which owns 26 shopping centers in the U.S. and Asia.

Simon has seen hundreds of its tenant stores stop paying rent and has filed suit against Gap Inc. for $66 million in back payments.

Taubman calls Simon’s decision to call off the deal “without merit” and that it “intends to hold Simon to its obligations” under the merger plan and to “vigorously contest” Simon’s withdrawal from the agreement.

Simon said the agreement gives it the right to terminate the deal if Taubman has been “disproportionately affected” by the shutdown. Simon now claims a large number of Taubman’s malls depend on tourists and high-end shoppers, which have largely disappeared from many of Taubman’s market areas.

Mall tenants have used the economic shutdown as leverage to negotiate lower rents. Some analysts theorize that Simon is using the shutdown to negotiate a lower price for Taubman’s properties.

TREND FORECAST: All the above facts and data in this Trends Journal clearly conclude that the economic future is the “Greatest Depression.” How quick the economy descends will be determined by how long the opening restrictions prevail and to what degree they will lessen… or worsen.

 

 

2 Comments
  1. Jay Jericho 2 months ago

    As a big fan of the dead mall series, experts on this topic like Sal make the point that in the next two decades, mall survivors will be the rare exception. He cites multi function malls in heavily populated downtown centers as the exception. Eaton Center on Yonge Street Toronto may be a classic. Where a mass live close by in walking distance. Few such malls exist. Are any readers expert on this topic? It’s a fascinating one, as most aged 30+ grew up by a mall. It was a place where you might see a relative or old school mate that you might not otherwise see. Sad to see them die. Death of a culture.

  2. Nickels 2 months ago

    I visited the local mall today. The stench of death was everywhere. It was sad. I only went in the stores that allowed me to break the mask rule. I tried to tell the lady at sunglass hut I was protesting George Floyd so I didn’t need a mask because protestors can’t get COVID, but it didn’t work. So I left.

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