Simon Property Group Inc. (SPG) named its planned spinoff of strip shopping centers and smaller enclosed malls Washington Prime Group Inc. and hired Mark Ordan to be the new company’s chief executive officer.
Ordan was most recently CEO of Sunrise Senior Living Inc., which was sold last year to Health Care REIT Inc. and private-equity firm KKR & Co., Indianapolis-based Simon said today in a statement. Before that, Ordan was CEO of Mills Corp., which was bought by Simon and Farallon Capital Management LLC in 2007.
Simon, the largest U.S. real estate investment trust, is focused on redeveloping its top regional malls, opening outlet centers and investing overseas to boost growth. The company, whose strip-center business accounts for 3.3 percent of its net operating income, in December said the new REIT will be better able to pursue acquisitions and development.
“We worked closely with Mark during the Mills transaction and found him to be a top-rate executive with particular expertise in creating value for an organization,” David Simon, chairman and chief executive officer of Simon Property, said in the statement. “I am very confident Mark has the retail real estate operating experience to lead this exciting new company.”
The new REIT will own 98 retail properties and is expected to generate net operating income of more than $400 million in its first year, Simon said in its December statement. Simon expected the spinoff to be completed in the first half of 2014.
David Simon will be a director of the new REIT and Richard Sokolov, Simon’s president and chief operating officer, will become chairman, according to the December statement.
Simon was little changed today, closing at $159.36. The shares rose 4.7 percent this year.
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