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Owners of Monroe outlet mall buy Jeffersonville Prime Outlets

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File photo Old Navy is one of the outlet stores at the Prime Outlets in Jeffersonville.

By Jessica Heffner, Staff Writer Updated 2:57 PM Tuesday, December 8, 2009

The group that owns Cincinnati Premium Outlets in Monroe is buying out the competition in Jeffersonville.

Simon Property Group, Inc. announced Dec. 8 that it has entered into a definitive agreement to acquire all of the outlet shopping center business of Prime Outlets Acquisition Company, including the outlet mall in Jeffersonville.

The transaction, valued at $2.325 billion, includes the assumption of Prime Outlets’ existing indebtedness and preferred stock. Under the terms of the agreement, Simon will pay Prime Outlets owners an equity consideration of about $700 million, according to a news release.

Chelsea Property Group, a division of Simon, owns and operates the Cincinnati Premium Outlets in Monroe, which opened in August.

No details have been released for how current Prime Outlets locations will be affected by the acquisition. Local shoppers shouldn’t notice any differences while doing business at Jeffersonville or any other Prime Outlets locations in the near-term. More information will be released when the deal closes late in the first quarter 2010 or early in the second quarter, said Les Morris, director of public relations for Simon.

“Operationally there is nothing we can say at this point. Today was just the announcement of entering into the definitive agreement. But it’s a good deal for Simon and we are excited to add Prime Outlets to our portfolio,” Morris said.

The Prime Outlets portfolio includes 22 outlet centers, such as the 410,000-square-foot Prime Outlets Jeffersonville located off Interstate 71 between Dayton and Columbus. The company has 8.2 million square feet of leasable space at centers throughout the country. As of June 30, Prime Outlets reported its centers were 92 percent occupied, generating $370 in annual sales per square foot.

“Prime Outlets is an excellent opportunity for Simon as it represents a strong strategic fit for our existing Premium Outlet portfolio and enhances our leadership position in the outlet business, said David Simon, chairman and chief executive officer of Simon.

The deal will boost the company’s presence to 63 outlet centers across the U.S. totaling 25 million square feet in retail space, Simon said.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.

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