Among the prizes in the Kravco portfolio is the 2.8-million-sf Plaza and Court at King of Prussia, which is the second largest mall in the country. With average sales in excess of $400 per sf, it is also one of the nation's most successful.

In all, Kravco owns interests in seven regional malls, six of which are in the Philadelphia metropolitan area, and three community shopping centers. Among its other properties are Montgomery Mall in Montgomeryville, PA; Oxford Valley Mall in Langhorne, PA; Whitehall Mall in Whitehall, PA, and Quaker Bridge in Princeton, NJ.

Simon is acquiring its interests in Kravco from private investors, including Columbia, MD-based Rouse Co. and Australia-based Westfield America Trust. Simon, Rouse and Westfield obtained their initial interests in Kravco with an acquisition of assets from Netherlands-based Rodamco North America NV in 2002.

The $300-million price tag includes the assumption of Simon's pro rata share of Kravco's mortgage debt. In connection with the purchase, Simon expects to issue $120 million of perpetual preferred operating partnership units. The transaction is expected to close within 30 days.

Arthur L. Powell, one of the Kravco founders, and other members of the Powell family will own the remaining interests in KI and KC, stay actively involved in the company, and continue to be based here. The Powells could not be reached for comment. However, Jon R. Powell, a Kravco principal, says, in a statement, "With the restructuring, and the resources and expertise of Simon Property Group behind us, Kravco will be better positioned to enhance the value of its managed properties and seek new investment opportunities in its geographic market."

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