Simon Property Group, Inc. and Ivanhoe Cambridge Inc. announced that Ivanhoe Cambridge has acquired an ownership interest in European Retail Enterprises (ERE), a European joint venture in which Simon has an interest. ERE owns Groupe B.E.G., a Paris-based developer, owner and manager of retail properties with over 40 years of experience in France, Italy, Poland, Portugal, Spain and Turkey.
Ivanhoe Cambridge acquired the 39.5% interest in ERE previously held by another institutional investor. Simon currently owns a 34.7% interest in ERE, with the remaining interest owned by founders of Groupe B.E.G. In the future, Simon and Ivanhoe Cambridge will equalize their ownership positions in ERE through the purchase of additional interests from the company's founders.
Simon and Ivanhoe Cambridge will have equal representation on ERE's board of directors. Hans Mautner, President of Simon's International Division and Chairman of Simon Global Limited, will continue to serve as Chief Executive Officer of ERE.
"We are very pleased that Ivanhoe Cambridge, an astute and sophisticated global real estate owner, manager, developer and investor, is our new partner in ERE," said David Simon, Chief Executive Officer of Simon Property Group. "This transaction validates the value creation that has occurred in the ERE/BEG portfolio, and also gives the entity stable ownership to pursue its exciting development pipeline."
"Ivanhoe Cambridge is delighted to partner with Simon Property Group, a world-class shopping center company. We look forward to having a long-term relationship with this seasoned industry leader," said Rene Tremblay, President and Chief Executive Officer of Ivanhoe Cambridge. "This transaction marks yet another step in Ivanhoe Cambridge's strategy to diversify geographically and expand our portfolio and network in Europe. It is also an excellent opportunity to invest in an established platform with considerable growth potential. With its strong team of professionals and the shareholders' support, we are confident that ERE will create significant value for Ivanhoe Cambridge and its shareholders."
Source: Simon Property Group Inc.