GREENSBORO, N.C. and INDIANAPOLIS, June 30, 2011 /PRNewswire/ -- Tanger Factory Outlet Centers, Inc., (NYSE: SKT) and Simon Property Group, Inc., (NYSE: SPG) announced today that they have entered into a definitive 50/50 joint venture agreement for the development, construction, leasing and management of a Tanger Outlet Center south of Houston, Texas.
Tanger Outlets ( Texas City, TX) will be located approximately 30 miles south of Houston and 20 miles north of Galveston on the highly traveled Interstate 45 (100,000 vehicles per day), Exit 17 at Holland Road. Houston is currently the fourth largest U.S. city, the largest in the state of Texas, and is a major business, financial, science and technology center with a diverse economic base. Galveston is a popular Gulf Coast getaway destination with 32 miles of beaches, restaurants and top resort hotels, attracting over 5 million visitors each year.
When completed, the center will play host to over 90 brand name and designer outlet stores in the first phase of approximately 350,000 square feet. The center is on 55 acres with ample room for future expansion of approximately 120,000 square feet, for a total build out of approximately 470,000 square feet. It is anticipated that the announcement of tenants and ground breaking ceremonies will take place in July of 2011 with the Grand Opening taking place approximately 12 months after the start of construction.
"We believe that Tanger and Simon will jointly develop a successful outlet center on this highly visible location south of Houston," stated David Simon, Chairman and Chief Executive Officer of Simon Property Group, Inc.Steven B. Tanger, President and Chief Executive Officer of Tanger Outlet Centers, Inc., commented, "The opportunity to build a Tanger Outlet Center south of Houston makes perfect sense. Our partnership with Simon will provide our retail partners with what we believe is the best location and strongest development. When built, we will offer residents and visitors to this region one of the nation's best brand name and designer outlet shopping centers with today's style and fashion trends at the best values every day." The joint venture will be co-owned by Tanger and Simon and will be branded as Tanger Outlets. Simon will provide site development, construction supervision, and asset management to the venture; Tanger will provide management services and marketing to the joint venture. Both companies will provide leasing services.