Man, if these malls could talk.
Major mall operator Simon Property Group (SPG +1.45%) will acquire its rival Taubman Centers (TCO +53.22%) for a pricey penny – $3.6 billion to be exact.
Investors charged Taubman’s stock like the mall on Black Friday…
- Mega-malls. Already the largest owner of US malls, Simon will add Taubman’s 26 malls to its massive portfolio of 204 retail properties.
- Shopping spree. It’s Simon’s second major purchase in 2020. Earlier this month, it announced plans to snag Forever 21 for $81 million.
How does it affect my wallet?
Under pressure. This deal highlights the pressure malls are facing to stay afloat. Department stores are closing locations left and right and malls are struggling to fill vacancies.
- Despite industry troubles, Simon is doubling down on their faith in retail with this $3.6 billion purchase.
Closing time? The rise of eCommerce has transformed the retail business. There’s no telling who will be left standing when the dust settles, but mall operators face an uncertain future.
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