Simon Property Group has sold a stake in Sparc, the operator of international fashion brands.
Simon Property Group has sold a stake in Sparc, the operator of international fashion brands Forever 21, Brooks Brothers, Aéropostale, Eddie Bauer, Lucky Brand, Nautica and Reebok. Simon continues to review its holdings amid a volatile retail environment, CEO David Simon said.
According to the latest filing, Simon’s stake in the Sparc business has shrunk to 33%, although it previously owned the company on a parity basis with Authentic Brands Group. The sale generated an after-tax gain of $118.1 million.
To date, Simon owns stakes in Brookfield, e-commerce company Rue Gilt Groupe and real estate developer Jamestown. The company previously said it considered gradually divesting its retail assets over five to 10 years. Earlier in the year, Simon sold the stake it owned
Net operating income from that portfolio fell 47% year-over-year to $46 million in the second quarter.
“We understand that even this small amount of earnings that we get, compared to our total earnings power, is volatile,” he told analysts during a conference call. “People don’t like the volatility,” Simon commented.
Net operating income for Simon’s North American properties rose 4.2% to $1.3 billion in the third quarter, while net active income for its international properties rose 6.3% to $75 million.
Simon Property Group announced significant gains in leasing activity, occupancy rates, and shopper traffic.
Simon Property Group announced significant gains in leasing activity, occupancy rates, and shopper traffic.
Chinese fashion giant Shein is further developing its partnership with US brand Forever 21.
Retail media networks are reshaping global advertising.
The world’s biggest fast-food business and the K-pop phenomenon are joining up again – and it’s not just a meal,…
Japanese fashion brands have become global forces in the industry, each leaving an indelible mark.
