Simon Property Group dates to 1960, when brothers
Melvin Simon and
Herbert Simon began developing strip malls in Indianapolis, Indiana. In December 1993, they took their interests public as Simon Property Group in the largest
initial public offering of a
real estate investment trust to date.[4] Simon Property merged with the newly public DeBartolo Realty Corporation, owner of the real estate assets of
Edward J. DeBartolo Sr., in 1996 to form Simon DeBartolo Group.[5][6] In the following year, the company acquired The Retail Property Trust for $1.2 billion in a
hostile takeover.[7] Also in 1997, in partnership with
Macerich, the company acquired 12 malls from
IBM's
pension plan for $974.5 million.[8] One year after these acquisitions, the company acquired
Corporate Property Investors and was renamed Simon Property Group.[9][10] The company also acquired an ownership interest in Groupe BEG, S.A., operator of shopping centers in Europe.[11]
In 1999, the company acquired 14 shopping centers from New England Development for $725 million.[12]
In April 2007, Simon and
Farallon Capital acquired the
Mills Corporation.[16][17] Two years later, Simon tried to buy malls owned by
General Growth Properties.[18] In February 2010, Simon placed a bid acquire General Growth, which was in
bankruptcy protection.[19][20] However, the bid was rejected by GGP. A GGP shareholder filed suit (Young v. Bucksbaum) against the company's
board of directors for rejecting Simon's bid, alleging breach of fiduciary duty.[21] In April 2010, Simon offered to make a $2.5 billion equity investment in GGP including a $1 billion investment by
Paulson & Co.[22][23] In May 2010, Simon withdrew from the bidding for GGP after GGP favored transactions with
Brookfield Asset Management.[24]
On March 18, 2020, the company announced the closure of its U.S. shopping malls until March 29, due to the
COVID-19 pandemic.[38][39][40] At the time, it was the largest mall owner in the United States.[41] In August 2020, the company discussed repurposing large stores into warehouses and fulfillment centers for
Amazon.[42][43] Also in August 2020, in partnership with Authentic Brands, the company acquired
Brooks Brothers and
Lucky Brand Jeans.[44] In December 2020, the company acquired
Taubman Centers for $3.4 billion.[45] It also acquired
J.C. Penney in partnership with
Brookfield Asset Management.[46] In April 2022, it was announced that Simon and Brookfield are set to offer to buy
Kohl's.[47] Simon purchased a 50% stake in
Jamestown, a real estate developer, in October 2022.[48]
Legal record
In 2007, the company was sued for banning the use of
Segways, which the plaintiff claimed was in violation of the
Americans with Disabilities Act.[49] In 2009, the company was sued by a nightclub for
racial discrimination for allegedly blocking its main entrance since the majority of its clientele were black.[50]
In 2011, the company was sued for allegedly firing a woman because she was pregnant.[51] In the same year, the company agreed to pay $125,000 to settle allegations by the
Equal Employment Opportunity Commission that Latino janitors working for the company were subjected to daily verbal attacks because of their national origin.[52]
^Liz Brumer-Smith (November 22, 2021).
"How Risky Is Simon Property Group?". nasdaq.com. Retrieved December 21, 2021. Its presence is massive, having ownership or interest in 196 indoor and outdoor malls across North America and 36 malls in Europe and Asia.