Simon Property plans to buy 7 Federated-owned buildings

0 Comments | Deseret News (Salt Lake City), May 2, 2006 | by Bloomberg News

Simon Property Group Inc., the largest owner of U.S. shopping malls, agreed to buy seven Federated Department Stores Inc. buildings located at Simon malls in Massachusetts, Indiana and New Hampshire. Terms weren't disclosed.

Federated, based in Cincinnati, is selling outlets it closed after acquiring May Department Stores Co. for $11 billion last year. The sale to Simon probably will be completed by July, the Indianapolis-based company said Monday in a statement.

Mall owners have said they planned to take advantage of mergers in the department-store industry by turning poor-performing locations over to better-performing retailers. Some former Federated stores at Simon Property malls will become Nordstrom locations, while others will house movie theaters, bookstores, specialty stores and restaurants, Simon said.