As previously reported, Simon Property Group, Inc. recently acquired Prime Outlets Acquisition Company, LLC. This gained the attention of the FTC, which determined that the merger would result in reduction or elimination of competition among outlet centers in southwest Ohio; Chicago, and Orlando. Now, as part of a settlement with the FTC, Simon will divest some of its property and modify certain tenant leases.
Under the proposed settlement, Simon will sell either the Cincinnati Premium Outlet center (located in Monroe, Ohio), or the Prime Outlets-Jeffersonville outlet center (in Jeffersonville, Ohio). Simon has also agreed to waive radius restrictions that would otherwise have prohibited tenants from signing leases with other outlet malls serving the Chicago and Orlando markets. Further, tenants in the Prime Outlets Orlando, Prime Outlets Orlando Marketplace, and Orlando Premium Outlets centers may unilaterally opt to extend their existing leases, without penalty, until January 1, 2015. More information about the FTC’s complaint and the proposed settlement is available in the notice published by the FTC in the Federal Register.
Notably, the proposed settlement is open for comment until December 10, 2010. The notice contains more information on how to submit comments. Comments may be submitted electronically.