Mall REIT Simon is suing over Taubman M&A; Gap, Brooks Brothers rent - Business Insider

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'Buyer's remorse' and unpaid rent: Simon Property, the biggest US mall REIT, is at the center of 3 big legal battles as stores finally begin to reopen

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In recent years, it's also been on a streak to buy up struggling tenants to help keep it malls stable. "The challenges that malls have are still there," Alexander Goldfarb, a managing director and senior research analyst for Piper Sandler, told Business Insider, highlighting how the coronavirus pandemic has exacerbated long-term secular changes to brick and mortal retail. "Simon is the only one positioned to win.

A JPMorgan note from June 10 said that share prices after the deal cancellation was announced made it appear that "the market seems to be viewing the Simon press release as more of a 'next step' in re-pricing the transaction rather than a final nail in the coffin on the deal." Some of Simon's own 200 plus properties are similarly indoor-enclosure focused, like Copley Place in Boston, but the company is also a leader in outdoor outlet centers, which customers may view as safer post-pandemic.

 

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