To Avoid Conflict, Tanger and Simon Join Forces on Outlet Project in Texas
The deal comes as a surprise to outlet center industry insiders, as Tanger does not have a track record of forming partnerships. In this case, however, Tanger was facing direct competition from Simon on the site. So rather than engage in a prolonged legal battle or grassroots campaign to drive each other off the land, as developers have often done in the past , the two decided to form a partnership.
They were going to fight like crazy and I think they correctly decided that rather than do that and create a situation where they would both be spending a lot of money, they decided to pick the best of the two sites and build one center through a partnership, according to Rich Moore, an analyst with RBC Capital Markets. Moore notes that such gestures of goodwill are rather unusual in the retail REIT arena.
On June 30, Tanger and Simon announced they would develop an outlet center of at least 350,000 square feet approximately 30 miles south of Houston through a 50/50 joint venture. The firms plan to break ground on the project, branded as Tanger Outlets, as early as this month, with Simon taking charge of site development and construction. Tanger will be responsible for management and marketing. If the venture proves successful, the center could eventually be expanded to 470,000 square feet.
Coming on the heels of announcements from both firms laying out similar strategies to develop outlet centers in Canadadown to naming the same Toronto submarket of Halton Hills as the site of each ventures first projectthe new deal underscores how similar Tangers and Simons growth plans have become. And given Simons desire to make opportunistic acquisitions during this market cycle and its history of picking up outlet center developers, it raises questions about the prospects of a potential Simon/Tanger merger.
REIT analysts, however, say that the current joint venture was born of necessity and that Tanger has no incentive to partner with Simon on a larger scale. There is growing competition among U.S. firms for outlet center development , with firms such as CBL & Associates, Macerich and Taubman Centers all also targeting the sector. As a result, Tanger and Simon may find forming joint ventures with each other preferable to battling each other while simultaneously warding off competition from other players.
Outlet Malls In Texas - News
AP SAN FRANCISCO—Tanger Factory Outlet Centers Inc. and Simon Property Group Inc. said Thursday that they will work on a joint venture to develop and build a Tanger Outlet Center south of Houston. Tanger said the companies will jointly develop, build,
In an instance of “if you can't beat them, join them,” Tanger Factory Outlet Centers has partnered with rival Simon Property Group to build an outlet center in Texas City, Texas. The deal comes as a surprise to outlet center industry insiders,
Currently, the city sees about six million tourists a year and the addition of this world class outlet mall will improve that number considerably.” Buxton has partnered with the City of Benbrook, Texas for the development of The Trails Town Center,
It as the first time the city had hired a full-time economic development officer, and it followed announcements of proposed major factory outlet malls in League City and Texas City. With those announcements came news that beer wholesaler Del Papa
TEXAS CITY, Texas — Setting aside a longtime retail rivalry, Tanger Factory Outlet Centers and Simon Property Group confirmed weeks of speculation they would co-develop a 90-store outlet mall in Texas City.
South-of-Houston Outlet Mall Competition Settles on Texas City ...
Tanger Outlets had hoped to build a new mall in League City, but the land it had its eye on was sold at auction. So the company has announced it will be teaming up with rival mall developers Simon Property Group to build a mall in Texas City, where Simon was planning its own Galveston Premium Outlets instead. The new Tanger Outlets will sit on 55 acres on the west side of the Gulf Freeway, north of the Walmart Supercenter just south of the Holland Rd. exit. The first phase is expected to feature 90 stores in 350,000 sq. ft. Groundbreaking ceremony is scheduled for this month.
Outlet Malls In Texas - Bookshelf
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FLEMINGTON MALL (cont.) Rt. 1 & Texas ... 08822 Description of Center Type: Neighborhood Mkt Strategy: Factory Outlet Year First Opened: 1965 Strip Center: ...Texas Monthly
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Johnson's alma mater, Texas State University, the crystal-clear Aquarena ... best outlet-mall shopping at the Prime Outlet and the Fangcr Outlet malls. ...Frommer's Texas
These are good for general shopping, but hold little of interest for most visitors. A different story is the outlet malls, the principal one being Katy ...Frommer's Texas
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