Simon Property Group Inc (SPG - Free Report) and Calloway Real Estate Investment Trust signed a Letter of Intent to develop the Premium Outlet shopping center in the Town of Halton Hills, Ontario. Located just 15 minutes outside Toronto, this will be the first Premium Outlet Center in Canada.
Simon Property and Calloway Trust are in the process of obtaining the municipal permits and approvals required to start constructing the shopping center in spring 2012.
The Premium Outlet shopping center is expected to cater to the needs of over 6.0 million residents in the neighboring areas due to its location. Simon Property has an outstanding record of providing shoppers with premium quality outlet centers. With the opening of the outlet, the Town of Halton Hills is expected to expand economically while creating innumerable job opportunities. The Premium Outlet Center features a mix of leading designers and branded stores offering items at discounted prices in a unique rural setting and ambience.
The Premium Outlet branded concept of upscale outlet shopping having the managerial expertise of Calloway and the reputation of providing highest quality shopping centers is anticipated to be a huge hit in Canada.
Simon Property is the largest publicly traded retail real estate company in North America, engaged in acquiring, owning and leasing a diverse portfolio of shopping malls. The outlet portfolio of the company consist of 69 premium outlet centers® including 57 in the United States, one in Puerto Rico, eight in Japan, two in Korea and one in Mexico.
The company’s international presence gives it a more sustainable long-term growth story than its domestically focused peers.
Currently, Simon Property retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors,Vornado Realty Trust (VNO - Free Report) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.