A venture of Simon Property Group Inc. (SPG - Free Report) and Invesco Ltd. (IVZ - Free Report) inked a definitive deal to acquire The Shops at Crystals for around $1.1 billion from CityCenter Holdings, LLC, a venture between MGM Resorts International (MGM - Free Report) and Infinity World Development Corp.
The move marks an opportunity for Simon Property and its venture partner to add a high-quality asset in a thriving marketplace. Subject to customary closing norms, the transaction is expected to be wrapped up in the second quarter of 2016.
Opened in 2009, The Shops at Crystals is positioned at the entryway of CityCenter and in the center of the Las Vegas Strip. The property has over 324,000 square feet of luxury shopping space. It is anchored by 10 luxury flagship stores, including Louis Vuitton, Gucci, Dolce & Gabbana, Prada, Fendi and Tiffany & Co. (TIF - Free Report) . Moreover, 30 luxury retailers including Celine, Saint Laurent and Richard Mille are also present on the property’s tenant roster.
Importantly, Las Vegas is a premier destination for both domestic and overseas visitors. The international clientele is in fact growing fast and Las Vegas witnessed a record number of visitors in 2015. Its economy has been growing in recent years, with visitors allocating more than half their travel budget to non-gaming expenses. This is creating a favorable business environment for retail properties.
Moreover, The Shops at Crystals’ ideal location is also a driving factor. It not only has a dedicated tram station but is also near several luxury resorts aggregating around 16,000 rooms. Being a pedestrian accessible and centrally positioned retail property on the Las Vegas Strip, this premium retail asset therefore has a solid opportunity for top-line growth.
Currently, both Simon Property and MGM Resorts carry a Zacks Rank #3 (Hold).
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