One difference between the markets is that Japan has more major cities, whereas most of South Korea's population is centered around Seoul, Chao says. Shinsegae Chelsea will likely build three to four centers in the country, he adds.

Beyond Japan and South Korea, Chelsea plans to build additional Asian developments. Chelsea is close to opening an office in Hong Kong, Chao says.

Simon's South Korean venture follows news earlier this month that Bloomfield Hills, MI-based mall owner Taubman Centers started a new division, Taubman Asia. The move comes after Taubman preliminarily agreed, in November, to develop the retail portion of New Songdon City, a 1,500-acre site, that is planned to include 10 million sf of retail, 50 million sf of offices and 30 million sf of residential space.

Matthew Ostrower, a retail REIT analyst at Morgan Stanley, says international developments can be risky because of a lack of familiarity with overseas markets, reliance on joint-venture partners and other factors. But many US developers have recently had success with such developments. "They're risky, but they offer returns if they're successful," Ostrower says. "Generally, it seems like Chelsea's foreign investments have generated enormous returns." He predicts more foreign developments by US shopping center owners in the future.