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Simon Calls Off $3.6B Deal for Taubman Centers

Simon Property Group said Wednesday it had terminated its Feb. 9 merger agreement with Taubman Centers Inc. and had filed suit against Taubman. The agreement valued Taubman at $3.6 billion.

The suit alleges that the COVID-19 pandemic had a “uniquely material and disproportionate effect on Taubman” compared to other operators, and that Taubman breached its obligations related to the operation of its business.

“In particular, Taubman has failed to take steps to mitigate the impact of the pandemic as others in the industry have, including by not making essential cuts in operating expenses and capital expenditures,” according to Simon.

Indianapolis-based Simon cited Taubman’s “significant proportion of enclosed retail properties located in densely populated major metropolitan areas, dependence on both domestic and international tourism at many of its properties, and its focus on high-end shopping.” It said these factors combined to impact Bloomfield Hills, MI-based Taubman’s business disproportionately amid the pandemic, compared to the rest of the retail real estate industry.

A Taubman spokeswoman didn’t respond immediately to Connect Media’s request for comment.

Pictured: Taubman’s Beverly Center in Los Angeles.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types as well as delving into broader subject matter. He produces 15-20 daily news stories per day and also works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.

  • ◦Sale/Acquisition
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