King of Prussia will grow, says new mall owner
Simon Property Group has bought full control and plans to "grow the income stream" at 'iconic' KofP
King of Prussia will grow, says new mall owner
Joseph N. DiStefano
Simon Property Group of Indianapolis has outbid a Morgan Stanley fund to take full control of the giant King of Prussia shopping centers from ailing Australian investors Lend Lease Group, Simon chief financial officer Stephen E. Sterrett told investors. Lend Lease had identified Morgan Stanley as the likely buyer in May, but added that co-owner Simon Property would also be able to bid. "King of Prussia Mall in Philadelphia, Pennsylvania, it's a mall that we've had (a minority) ownership interest in since 2003, but we recently grew our ownership interest," and for the first time "we are now in a position to control the day-to-day activities and management and leasing of this center," Sterrett told investors at a Barclays Capital conference yesterday. "It's one of the top 10 malls in the United States, and it's one that we are really excited about, because we think there is significant upside potential in our ability to grow the income stream in what already is one of the iconic malls in the United States."
Sterrett wasn't specific about how he plans to boost sales at the upscale complex, with its nine department stores and hundreds of boutiques, amid a howling economic slump, as more shoppers move online.
Big mistake. With consumer spending at an all time low, unemployment at an all time high and the dollar weakening everyday...expensive retailers and malls will be doomed as buyers stop spending and seek discount stores for everyday items.
A good idea would be to knock it all down and build a Walmart... oh, and a Bottom Dollar. If you build it, they will come.— The Baron- Citizensc92. I hear you but KOP mall is a high end mall where the average shopper makes an average of 75K and up a year. It is the largest east coast mall and second in the nation behind mall of america. Recent reportd shows that even though the economy is bad high end goods are still being sold. The rich is actually making money and not hurting so they can still splurge.— knmcmahon
- While real unemployment maybe approaching 20%, the upper 20% of the population is doing just great. This mall, all the way out in the middle of nowhere, far from the city and its poor, will not have any problems what so ever.— Fernando08
- If anyone thinks this mall is growing in a troubled ecomony they you are listening to the media too much. During that last quarter you couldn't find good parking there. While surprisingly people do not see the increased spending on the internet to the increased unemployement. The mall is well posistioned and is extremely busy dispite what the "expert" believe is a downed ecomony. Simon should probably invest in more energy efficient lighting like 7-Eleven and other retail companies have done though.— siriusfan
- The KP mall is more for the affluent shopper. So not much downside of unemployment. And yes there is a Walmart and Bottom Dollar in KP too.— Roy Philipose
- Bring back Space Port— Sports4Life
