Simon Property is at the center of 3 big legal battles as stores finally begin to reopen. Here’s what the future holds for the biggest US mall REIT.
- Simon Property Group is suing Taubman Properties to back out of its $3.6 billion deal to acquire the mall company.
- It’s also suing Gap, its largest tenant, and Brooks Brothers for withholding rent.
- Here’s what analysts think the future holds for the biggest US mall REIT.
- Visit Business Insider’s homepage for more stories.
Brick-and-mortar retail has been reopening across the country, punctuated Monday morning by the reopening of non-essential retail stores in coronavirus hotspot New York City.
Even so, retailers and their landlords are looking to ride out a period where regulation, a shutdown of international tourism, and consumers’ fear about virus transmission and a second pandemic wave will likely keep retail foot traffic subdued for months.
In the midst of this, the largest US mall landlord, the Simon Property Group, has filed three major lawsuits: two to get paid rent from struggling retailers, and one to get out of a deal to buy a competitor.
In recent years, it’s also been on a streak to buy up struggling tenants to help keep it malls stable.
Simon’s first-quarter profits fell about 20%, and it’s laid off or furloughed workers while cutting exec salaries. CEO David Simon was optimistic on an earnings call in …continued .
[Source: Business Insider]