A subsidiary of Indianapolis-based Simon Property Group (NYSE: SPG) is being purchased for approximately 715 million euros, or nearly $980 million in U.S. funds. Simon Ivanhoe, which is jointly held with Ivanhoe Cambridge, and its seven shopping centers will be acquired by Unibail-Rodamco. The deal includes properties in France and Poland.

Unibail-Rodamco announces that it has entered into an agreement to acquire Simon Ivanhoe, a jointly held European subsidiary of the Simon Property Group and Ivanhoe Cambridge, with a portfolio of shares in 7 shopping centres in France and in Poland.

Unibail-Rodamco has also entered into a joint venture agreement according to which the Simon Property Group and Ivanhoe Cambridge will jointly retain 50% of Simon Ivanhoe's interests in 5 retail development projects in France, including Les Portes de Gascogne in Toulouse which has been authorised. Unibail-Rodamco will develop these 5 projects on behalf of the joint venture.

Unibail-Rodamco has agreed to pay the Simon Property Group and Ivanhoe Cambridge €715 million for the assets (excluding transfer and transaction costs), subject to customary post-closing adjustments. The transaction is expected to close during the first half of 2010, subject to customary closing conditions and antitrust approval. Unibail-Rodamco will fund the acquisition from existing bank facilities.

Guillaume Poitrinal, Chairman of the Management Board and CEO of Unibail-Rodamco, said: "This transaction represents a unique opportunity to reinforce further our presence in the large Shopping Centre segment, in French and Polish capital cities. These assets and the development projects offer excellent growth prospects and we are pleased and honoured to be partnering with Simon Property Group and Ivanhoe Cambridge in those developments."

The largest asset in the portfolio is Arkadia which complements Unibail-Rodamco's existing portfolio in Warsaw, Poland. The Arkadia shopping centre opened its doors in October 2004 and is currently among the largest shopping centres in Central Europe, with a total retail area of 103,128 sq m.

Centres in operation (total GLA including other co-owners):
- Arkadia / Warsaw (Poland) 103,128 sq m
- Wilenska Station / Warsaw (Poland) 35,400 sq m
- Bay 1/ Bay 2 / Marne la Vallée (France) 86,002 sq m
- Bel'Est / Bagnolet (France) 27,117 sq m
- Villabé A6 / Corbeil (France) 26,410 sq m
- Wasquehal / Wasquehal (France) 23,614 sq m

Development projects:
- Les Portes de Gascogne / Toulouse (France)
- Les Terrasses de Poncy / Poissy (France)
- Le Cannet (France)
- Mandelieu - La Napoule (France)
- Saint Geours de Maremne (France)