Simon-Farallon Close $7.9B Mills Buy

CHEVY CHASE, MD-Capping a multi-faceted bidding war the acquisition of Mills Corp. has closed. On April 3, Simon Property Group Inc. and Farallon Capital Management LLC formally acquired the company through SPG-FCM Ventures, a JV owned by SPG and funds managed by Farallon. The $7.9 billion acquisition, which includes assumed debt, was completed through the merger of a subsidiary of SPG-FCM Ventures and Mills.

All outstanding common shares of the Mills were converted into the right to receive $25.25 per share in cash, a number previously reported by GlobeSt.com.Although it has its share of financial and regulatory issues, Mills has been a much sought after company given its extensive asset base. Its portfolio consists of 20 regional malls and 17 traditional Mills properties totaling more than 45 million sf of gross leasable space. A typical Mills property, which is a combination of traditional mall, outlet center, big box retailers and entertainment uses, could have as much as one million sf of gross leasable area.