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Chelsea, Unit of Simon, Forms Joint Venture With Shinsegae
- Partnership to Develop Premium Outlet(R) Centers in South Korea -
INDIANAPOLIS, April 19 /PRNewswire-FirstCall/ -- Chelsea Property Group, a
wholly-owned subsidiary of Simon Property Group, Inc. (NYSE:SPG), announced
today that it signed an agreement with Seoul-based Shinsegae Co., Ltd. and
Shinsegae International Co., Ltd. (together, "Shinsegae") to jointly develop
Premium Outlet(R) centers in South Korea.
The joint venture, known as Shinsegae Chelsea Co., Ltd., will adapt Chelsea's
Premium Outlet concept to the development of upscale, fashion- oriented outlet
centers in South Korea. Chelsea will contribute leasing, design, marketing and
operations expertise to the venture; Shinsegae will manage the venture's
entitlement, development and construction activities. The partners have agreed
to conduct premium outlet development and day-to-day management activities in
South Korea exclusively through the joint venture. Chelsea and Shinsegae each
have a 50% interest in the venture.
Shinsegae Chelsea, to be headquartered in Seoul, will focus initially on
developing a Premium Outlet center to serve the greater Seoul market. Details
of the project are expected to be released within the next several months.
Mr. Leslie Chao, President of Chelsea Property Group, said, "We are delighted
to be joining with Shinsegae, South Korea's leading retailing company, to bring
Premium Outlets to South Korea. Shinsegae's strong local development and
retail expertise, combined with Chelsea's international outlet experience,
should enable us to capitalize on opportunities in Seoul as well as other South
Korean markets. Our goal is to develop outlet centers of the highest-quality
possible by pooling our know-how in design, brand tenancy and consumer appeal."
Mr. H.S. Koo, Chief Executive Officer of Shinsegae, said, "This joint venture
comes at the end of a long period of pre-development dialogue, during which a
great deal of confidence and mutual trust have been built between our two
companies. We believe that the partnership between Chelsea and Shinsegae is a
logical one, and we will work hard to ensure that the joint venture takes full
advantage of the strengths that each partner brings."
Shinsegae, a diversified retailer, is a market leader in South Korea. Since the
completion of the first Shinsegae Department Store in 1929, the first
department store ever to be constructed in South Korea, Shinsegae has grown
rapidly and currently operates 7 department stores and 70 discount stores
nationwide and 3 in China, with total revenue of more than $7.6 billion.
Shinsegae International began its life as the international division of
Shinsegae Department Store. In 1996, Shinsegae International Co., Ltd.
separated from Shinsegae Department Store to further expand upon and specialize
in its fashion business. Shinsegae International maintains its outstanding
performance in sales and earnings by building on its leading position in two
key segments -- imported fashion and apparel -- with 8 free- standing stores
and 204 shop-in-shops.
Chelsea Property Group is the world's largest owner and operator of
manufacturers' outlet centers with interests in 60 Premium Outlet and other
shopping centers -- containing 17.1 million square feet of GLA -- in 30 states,
Japan and Mexico. The Company's leading properties include Woodbury Common
Premium Outlets, near New York City; Orlando Premium Outlets in Orlando,
Florida; Desert Hills Premium Outlets, near Palm Springs, California; Gotemba
Premium Outlets, near Tokyo; Rinku Premium Outlets, near Osaka; and three other
Japanese centers. Please see http://www.cpgi.com/ for more information.
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a real
estate investment trust engaged in the ownership, development and management of
retail real estate, primarily regional malls, Premium Outlet(R) centers and
community/lifestyle centers. The Company's current total market capitalization
is approximately $36 billion. Through its subsidiary partnerships, it
currently owns or has an interest in 296 properties in the United States
containing an aggregate of 203 million square feet of gross leasable area in 40
states plus Puerto Rico. Simon also holds interests in 51 European shopping
centers in France, Italy, Poland and Portugal; 5 Premium Outlet(R) centers in
Japan; one Premium Outlet(R) center in Mexico; and one shopping center in
Canada. Additional Simon Property Group information is available at
http://www.simon.com/ .
DATASOURCE: Simon Property Group, Inc.
CONTACT: Karen Fluharty of Chelsea Property Group, +1-973-403-2592
Web site: http://www.simon.com/
http://www.cpgi.com/