WICHITA, Kan. - Indianapolis-based Simon Property Group announced Friday a plan to spin off all of its strip center business and smaller enclosed malls into an independent, publicly traded real estate investment trust called SpinCo, including Towne West Square in Wichita.
Simon’s Towne East Square is not affected.
“We are excited that Towne West Square will become part of a new company of malls and strip centers,” a Simon Property Group spokesperson said in an email. “Simon will continue to manage Towne West Square and it will be operated as business as usual and welcome all holiday shoppers. We look forward to continuing to provide the Wichita community with great retail and entertainment experiences. ...”
SpinCo’s mission will be to own stable, quality strip centers and malls that effectively serve the communities in which they are located, according to a Simon news release. SpinCo is expected to initially own or have an interest in 54 strip centers and 44 malls, with each of the malls generating annual net operating income of about $10 million or less, the release says.
The new company, which will have an independent, dedicated executive management team, will maintain a relationship with Simon. Richard Sokolov, Simon’s president and chief operating officer and member of its board, will also become chairman of the board of SpinCo, and David Simon, chairman and CEO of Simon, will also serve as a director of SpinCo, the release says.
Simon’s strip center management team and personnel will become employees of SpinCo, SpinCo’s malls will continue to receive property management services from Simon, and SpinCo’s support functions will be provided by Simon on a transitional basis, the release says.
The spin-off is expected to be completed in the second quarter of 2014.