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Simon closes on a new $5 billion credit facility

Al Urbanski
Simon added 500-plus apartments at Southdale Center in Minnesota.

The nation’s largest owner-operator of malls has extended its financial flexibility with new a new deal.

Simon Property Group reported closing on a new $5 billion multi-currency unsecured revolving credit facility that will replace its existing $4 billion package. The new arrangement will initially mature in mid-2027 and can be extended for another year.

"The closing of this facility is a continued endorsement of the strength of our company,” said CEO David Simon. “When combined with our existing $3.5 billion senior unsecured credit facility, it provides us with $8.5 billion of total revolving credit capacity."

The facilities are supported by a globally diverse lender group composed of 24 banks, led by JPMorgan Chase, BofA Securities, PNC Capital Markets, Wells Fargo Securities, and Mizuho Bank.

In 2022’s fourth quarter, the Indianapolis-based operator of more than 250 malls worldwide reported having completed 14 redevelopment and densification projects and opening a new outlet center in Japan. During that period, it also executed leases for up to 14 million sq. ft. of space.

Fukaya-Hanazono Premium Outlets opened last October in Fukaya City, Simon’s 10th Premium Outlet Center in Japan. In the United States, redevelopment programs continue at Simon’s Northgate Station in Seattle; Southdale Center in Edina, Minn.; St. John's Town Center in Jacksonville; Stanford Shopping Center in Palo Alto; Towne East Square in Wichita, and The Falls in Miami.

The company’s portfolio-wide occupancy rate in the U.S. was 94.9% at the close of 2022, an increase of 1.5% over the previous year. Base minimum rent per sq. ft. was $55.13, a 2% increase, and average sales per sq. ft. hit $753—a rise of 5.6%.

Simon reports having spent $9 billion on property redevelopments over the past 10 years. At its Phipps Plaza in Atlanta, it is adding a Nobu Hotel & Restaurant, a Citizens Culinary Market, and a 13-story Class A office building. At Southdale Center, 568 residential units have been added.

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