8-KOther Events

SIMON PROPERTY GROUP INC. 8-K Report (May 20, 2002)

Filed May 20, 2002For Securities:SPGSPG-PJ

Summary

Simon Property Group, Inc. (SPG) filed an 8-K report on May 20, 2002, detailing a significant acquisition by its majority-owned subsidiary, Simon Property Group, L.P. (the Operating Partnership). On May 3, 2002, the Operating Partnership, in conjunction with Westfield America Trust and The Rouse Company, acquired partnership interests from Rodamco North America N.V. and its affiliates for a total of $5.4 billion. SPG's portion of this strategic acquisition amounts to $1.59 billion, which includes assuming $579 million in debt and perpetual preferred units. This acquisition expands SPG's portfolio by adding interests in four existing joint ventures and nine new properties, primarily regional malls. The financing for SPG's share was largely covered by its existing credit facility and a new acquisition facility, underscoring the company's access to capital for growth initiatives. While the report indicates that financial statements and pro forma information related to this acquisition are not yet required at the time of filing, it highlights a substantial expansion of SPG's real estate holdings and operational management capabilities.

Key Highlights

  • 1Simon Property Group, L.P. acquired partnership interests from Rodamco North America N.V. and its affiliates on May 3, 2002.
  • 2The total acquisition value was $5.4 billion, with SPG's Operating Partnership contributing $1.59 billion.
  • 3SPG's share includes assuming $579 million in debt and perpetual preferred units.
  • 4The acquisition adds interests in four existing joint venture assets and nine new properties, primarily regional malls.
  • 5The Operating Partnership's portion of the purchase price was funded through its existing $1.25 billion credit facility and a new $600 million acquisition facility.
  • 6The acquisition facility was a 12-month credit facility priced at LIBOR plus 65 basis points.
  • 7SPG sold partnership interests in three properties acquired as part of this transaction for approximately $391 million.

Frequently Asked Questions

The main event reported is a significant acquisition by Simon Property Group, Inc.'s (SPG) majority-owned subsidiary, Simon Property Group, L.P. (the Operating Partnership), of partnership interests from Rodamco North America N.V. and its affiliates.

SPG's Operating Partnership's share of the acquisition was $1.59 billion, which included assuming $579 million in debt and perpetual preferred units. The balance was paid in cash. SPG also subsequently sold interests in three acquired properties for approximately $391 million.

SPG's share was funded by approximately $180 million from its existing $1.25 billion credit facility and a new $600 million acquisition facility provided by a syndicate of major banks.

At the time of filing, SPG stated that they believed no financial statements or pro forma information were required under Regulation S-X. However, they reserved the right to amend the report and file such information within 60 days if they later determine it is required.