INDIANAPOLIS — Indianapolis-based Simon Property Group, the nation's largest mall operator, is growing in size, and the price tag is $3.6 billion.
That's how much Simon is paying to buy Taubman Realty Group (TRG), which is headquartered in suburban Detroit. The deal was announced Monday by Simon Chairman and Chief Executive Officer David Simon and Robert Taubman, the head of Taubman.
"Over the last few years, David and I have developed an excellent personal relationship and most importantly, Simon shared our commitment to serving retailers, shoppers and the communities in which we operate. The board and I are confident that Simon is the ideal partner to help us build on our progress," said Taubman.
"By joining together we will enhance the ability of Taubman to invest in innovative retail environments that create exciting shopping and entertainment experiences for consumers, immersive opportunities for retailers and substantial new job prospects for local communities," said David Simon.
Taubman Realty Group owns 24 shopping centers in the U.S. Simon owns many times that number. According to Monday's announcement, TRG will continue to be managed by the company's executive team.
Simon's corporate headquarters is in downtown Indianapolis. It, and other mall operators. have seen many of the retailers in their properties close in recent years as shoppers turn to online alternatives. Last week, Macys announced plans to close 125 of its stores. Macy's recently shut down in Glendale location in Indianapolis, and the Macys in Muncie is in the process of closing.
The Associated Press and WXYZ Television in Detroit contributed to this report.