Simon Property Group, Inc. (SPG - Analyst Report) recently opened its first Premium Outlet Center in St. Louis, Chesterfield. The move depicts this retail real estate investment trust’s (REIT) strategy of expanding its Premium Outlets portfolio in upscale locations across the world.
The new outlet shopping centre – St. Louis Premium Outlets – was opened in a joint venture with Woodmont Outlets, which is a developer and operator of retail U.S. shopping centers. This 100% leased outlet is situated on the south side of I-64/US Highway 40, east of the Daniel Boone Bridge and serves the Greater St. Louis area.
The first phase of St. Louis Premium Outlets, spanning 350,000 square feet, has 90 outlet stores. This comprises outlets of brands of several industry-leading companies such as Vera Bradley, Michael Kors Holdings Limited (KORS - Analyst Report), Coach, Saks Incorporated , J.Crew and Nike.
We expect the above-mentioned property to enhance Simon Property’s top-line growth prospects, given the strategic location of the Premium Outlets Center in one of most highly productive areas in the U.S.
Simon Property has been actively capitalizing on growth opportunities in fast-growing markets worldwide, with a focus on enhancing its Premium Outlets portfolio. Including the recently opened property, the company now has 80 Premium Outlet Centers comprising 65 in the U.S and 15 abroad.
Notably, the growing Chesterfield market is attracting other retail REITs and building up the competitive pressure. Earlier this month, another REIT Taubman Centers, Inc. (TCO - Analyst Report) opened its fashion outlet center – Taubman Prestige Outlets Chesterfield – in the western St. Louis suburb of Chesterfield. Notably, this was the company’s first Taubman Prestige Outlet property in Missouri.
Simon Property currently carries a Zacks Rank #3 (Hold).