Consistent with the strategy of expanding its Premium Outlets portfolio globally in upscale locations, Simon Property Group, Inc. (SPG - Analyst Report) recently opened its third Premium Outlet Center – Busan Premium Outlets – in South Korea. This retail real estate investment trust (REIT) opened the asset in a joint venture (JV) called Shinsegae Simon, with Shinsegae Group.
Busan Premium Outlets, which comprises 343,000 square feet of retail space, was constructed with a total investment of $148 million. The property is positioned in the southeastern tip of the Korean Peninsula and 21 km north of downtown Busan, the 2nd largest city in Korea. Moreover, Busan Premium Outlets is in proximity to the largest beach resort in Korea, Haeundae Beach Resort, which enjoys annual tourist visitations of around 20 million.
Busan Premium Outlets boasts about 180 outlets of various premium casual lifestyle, sportswear and home fashion brands such as Adidas, Puma Golf, Coach, Inc. (COH - Analyst Report), Jill Stuart, Marc Jacobs, Coleman of Jarden Corp. and Calvin Klein of PVH Corp. (PVH - Analyst Report).
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 South Korea’s highly productive areas.
Simon Property has been actively capitalizing on growth opportunities in fast-growing markets worldwide. In relation to that, on Aug 22, the company opened its first Premium Outlet Center – St. Louis Premium Outlets – in Chesterfield. Including Busan Premium Outlets, Simon Property now has 81 Premium Outlet Centers around the world.
Simon Property currently carries a Zacks Rank #3 (Hold).