Retail rivals Tanger Factory Outlet Centers, Inc., (NYSE SKT) and Simon Property Group, Inc., (NYSE:
SPG) announced a joint venture to develop and operate an outlet center mall on 55 acres south of Houston.
The JV will develop, build, lease and manage, the property, branded as a Tanger Outlet Center, in Texas City on Highway 45. The center will be 30 miles from Houston and 20 miles north of the popular Gulf Coast resort town of Galveston.
The firms expect to announce and break ground this month on the project that will total 470,000 square feet at build out, with delivery of the first 350,000-square-foot phase planned for summer 2012. Initial tenants will include more than 90 brand name and designer outlet stores, and the 55-acre property includes ample room for a future 120,000-square-foot expansion.
The joint venture will be co-owned by Simon and Tanger. Indianapolis, IN-based Simon, the largest U.S. REIT with a market capitalization of nearly $34.8 billion, will provide site development, construction supervision, and asset management. Greensboro, NC-based Tanger will contribute management services and marketing to the joint venture. Both companies will provide leasing services.
Tanger -- one of the leading owners and operators of outlet shopping centers with 35 properties in 23 states totaling 10.7 million square feet --
announced this week it has entered the Ohio market, acquiring an outlet center in the tri-city area of Cincinnati, Columbus and Dayton, OH, for $134 million.