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Simon Property Group buying stakes in French real estate company, US mall business
INDIANAPOLIS (AP) ' Simon Property Group Inc. is buying a minority stake in Paris-based real estate company Kl pierre from BNP Paribas for about $2 billion in a move to expand its geographic reach.
The largest mall operator in the U.S. is also purchasing joint venture partner Farallon Capital Management LLC's interest in 26 U.S. shopping malls owned by The Mills LP for $1.5 billion.
Simon Property said Thursday that it will pay 28 euros ($37.04) per share for about 54.4 million shares of Kl pierre, which will make it Kl pierre's biggest shareholder. Simon Property said it currently has no plans to buy additional shares of Kl pierre.
Taking both transactions into account, Simon Property is now raising its 2012 funds from operations outlook above Wall Street's expectations.