Taubman Centers, Inc. (NYSE: TCO
) has scrapped efforts to develop The Mall at Oyster Bay, selling the 39-acre site in Syosset, NY, to rival Simon Property Group (NYSE: SPG
Simon, the world's largest mall owner and operator, also acquired Taubman's interest in Arizona Mills in Tempe, AZ. The Bloomfield Hills, MI-based REIT received $230 million in Simon Property shares and $60 million cash for the two transactions.
"Despite our best efforts and continuing enthusiasm for the opportunity, it became apparent that we were not going to be able to move forward anytime soon in Syosset with development of The Mall at Oyster Bay," said Robert S. Taubman, chairman, president, and chief executive officer of Taubman Centers.
The sale of the site at the northeast corner of the Long Island Expressway (I-495) and Robbins Lane allows Taubman to pursue other more promising projects in its development pipeline.
In addition, the sale of the 50% interest in Arizona Mills allows Taubman to recycle capital for reinvestment in the business, Taubman said.
The sale relieves Taubman of its $84 million share of the current $167 million mortgage loan on Arizona Mills at I-10 and U.S. 60, the state's largest outlet center. A partnership of Taubman, The Mills Corp. and Simon developed the center, which opened in 1997. Simon will own 100% of the center.