Simon® Acquires Remaining Interest in Taubman Realty Group

Rhea-AI Summary

Simon (NYSE:SPG) closed the acquisition of the remaining 12% interest in The Taubman Realty Group limited partnership on Nov 3, 2025 in exchange for 5.06 million limited partnership units in Simon Property Group L.P.

Management said the transaction will be accretive, gives Simon full ownership of TRG, and is intended to unlock operational synergies, increase net operating income and support long‑term returns for shareholders. The release also lists standard forward‑looking risks affecting retail real estate and operations.

Positive

• Acquired remaining 12% interest in Taubman Realty Group (closed Nov 3, 2025)
• Consideration: issued 5.06 million limited partnership units to acquire interest
• Company stated the transaction will be accretive and enable operational synergies

Negative

• Press release reiterates broad risk factors including competitive retail market and tenant/lease risks

Insights

Real Estate M&A Strategist

Simon completed full ownership of Taubman by buying the remaining 12% interest, issuing 5.06 million LP units.

Full ownership simplifies governance and aligns cash flow from the acquired portfolio under Simon. Management states the deal is accretive and will enable operational synergies and higher net operating income, which directly affects consolidated earnings streams and REIT distributions.

Key dependencies include successful integration of assets and realization of stated synergies. Monitor asset-level operating income, lease renewal outcomes, and any changes to debt or capital structure after Nov. 3, 2025. Watch quarterly operating metrics and disclosures over the next 2-4 quarters for evidence the transaction is accretive as claimed.

INDIANAPOLIS, Nov. 3, 2025 /PRNewswire/ -- Simon^®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today announced that it has closed on the acquisition of the remaining 12% interest in The Taubman Realty Group Limited Partnership ("TRG") which it did not own in exchange for 5.06 million limited partnership units in Simon Property Group L.P.  

"We are pleased to finalize this transaction, which will be accretive to Simon," said David Simon, Chairman, Chief Executive Officer and President.  "This acquisition aligns with our strategy of owning high-quality assets, unlocking operational synergies and driving further innovation.  With full ownership of TRG, we are well-positioned to capitalize on new growth opportunities, increase net operating income and deliver long-term returns to our shareholders." 

Mr. Simon added, "I would like to thank Bobby and Billy Taubman, and the entire TRG team, for our successful partnership over the last five years."

"I want to thank everyone at Taubman, present and past, for their contributions to our success over the 75 years since our founding by my father Alfred," said Robert Taubman, Chairman and Chief Executive Officer, Taubman Realty Group.  "I also want to thank David and his team for our wonderful partnership over the past five years.  With this transition, Billy and I look forward to being significant Simon shareholders for many years to come."

Forward-Looking Statements
Certain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained, and it is possible that the Company's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the intensely competitive market environment in the retail real estate industry, the retail industry, including e-commerce; the inability to renew leases and relet vacant space at existing properties on favorable terms; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; the potential loss of anchor stores or major tenants; an increase in vacant space at our properties; the loss of key management personnel; changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, the impact of tariffs and global trade disruptions on us to the extent impacting our tenants, recessionary pressures, wars, escalating geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the potential for violence, civil unrest, criminal activity or terrorist activities at our properties; the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; changes in market rates of interest; our international activities subjecting us to risks that are different from or greater than those associated with our domestic operations, including changes in foreign exchange rates; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restrictions on us that may affect our ability to operate freely; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; the inability to lease newly developed properties on favorable terms; risks relating to our joint venture properties, including guarantees of certain joint venture indebtedness; reducing emissions of greenhouse gases; environmental liabilities; natural disasters; uncertainties regarding the impact of pandemics, epidemics or public health crises, and the associated governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; and general risks related to real estate investments, including the illiquidity of real estate investments.

The Company discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC.  The Company may update that discussion in subsequent other periodic reports, but except as required by law, the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

About Simon
Simon ^® is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales.

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SOURCE Simon

FAQ

What did Simon (SPG) acquire on November 3, 2025?

Simon acquired the remaining 12% interest in Taubman Realty Group, closing the transaction on Nov 3, 2025.

How did Simon pay for the remaining 12% of Taubman Realty Group in the SPG deal?

The consideration was 5.06 million limited partnership units in Simon Property Group L.P.

Will the SPG acquisition of Taubman be accretive to shareholders?

Simon management said the transaction will be accretive and is expected to unlock operational synergies.

What investor risks did Simon (SPG) highlight after the Taubman acquisition?

The company reiterated risks including the competitive retail environment, tenant insolvency, lease renewal challenges, interest rate and macroeconomic risks.

Does the Nov 3, 2025 SPG announcement change Simon's ownership of Taubman properties?

Yes; Simon now holds full ownership of Taubman Realty Group following the closing.