Simon Property Group, the nation’s largest owner and operator of shopping, dining, entertainment and mixed-use centers, has acquired the remaining 12 percent interest in The Taubman Realty Group Ltd. Partnership that it did not own, in exchange for 5.06 million limited partnership units in Simon.

“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.” 

The Taubman family has a rich history of developing highly productive enclosed malls in the U.S. and abroad. Among the key properties in the Taubman portfolio are the Mall at Short Hills in New Jersey; Beverly Center in Los Angeles; Waterside Shops in Naples, Fla., and the Mall of San Juan in Puerto Rico. Taubman also has two centers in China, in Xian and Zhengzhou. The company was founded by the late A. Alfred Taubman, a pioneer in the mall industry who early on saw the opportunity to develop shopping destinations in the nation’s suburbs as they were rapidly growing.

Two and a half decades ago, Simon first attempted a hostile takeover of Taubman which Taubman thwarted. However, declining shopper traffic in malls, the ongoing consumer migration toward e-commerce and the pandemic altered the dynamic between the two mall competitors. Simon also has a track record of gobbling up other shopping center properties and outlet centers.

In late 2020, after some back and forth negotiating, Simon bought an 80 percent ownership interest in Taubman for $43 a share, which was down from an original offer of $52.50 per share. The deal was negotiated down due to concerns about Taubman’s performance during the pandemic. Subsequently, Simon acquired 8 percent more of Taubman.

Robert Taubman, chairman and chief executive officer, Taubman Realty Group, said in a statement on Monday: “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. 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,” said Taubman, referring to his brother, who served as president and chief operating officer of Taubman Realty Group.

The Taubmans are no longer employed by TRG. The TRG-managed portfolio will be operated by Simon going forward, an official from Simon indicated.

In his statement Simon said, “I would like to thank Bobby and Billy Taubman, and the entire TRG team, for our successful partnership over the last five years.”