Simon Opens Outlet In Japan

TOKI, JAPAN-Simon Property Group has opened its second outlet center since acquiring Chelsea Property Group in a $3.5-billion deal last year. The $44-million Toki Premium Outlets, near the city of Nagoya, is 178,000 sf and is fully leased with 85 upscale tenants.Tenants in Toki include Adidas, Bally, Bruno Magli, Lacoste and Versace. The center also has six cafes and an eight-restaurant food court. Designed like a ski resort, since the center is in an area referred to as the Central Japan Alps, Toki has street-shopping as well as large plazas. About 7.3 million people live within a 50-kilometer drive of the center. Simon plans to add a second phase to Toki, but company officials have not yet released details about the project.Toki Premium Outlets is owned by Chelsea Japan, a partnership between Simon, Japan-based real estate company Mitsubishi Estate Co. Ltd. and multi-business conglomerate Nisho Iwai Corp. It is the group’s fifth center in Japan in the last five years. Last March, Simon opened Tosu Premium Outlets, a 185,000-sf center 20 miles south of Fukuoka, Japan’s fourth-largest center. Simon has announced plans to expand its presence in Japan and other Asian countries.This is the second outlet center Simon has opened since acquiring Chelsea. In December it opened Premium Outlets Punta Norte, a 231,000-sf center 17 miles northeast of Mexico City, the company’s first center in that country.Indianapolis-based Simon will spend $500 million annually on development and redevelopments over the next several years, executives said yesterday during their Q4 conference call. Besides Japan, the company owns 296 centers in the US and Puerto Rico, 51 in Europe, where executives are also planning growth.