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Simon Puts Brakes on Development

INDIANAPOLIS-The company is spending less than $50 million next year, as management plays it conservatively.

By Debra Hazel | Updated on January 30, 2009

INDIANAPOLIS-Continuing a successful conservative approach, Simon Property Group plans no new construction starts this year, executives said at the company’s fourth quarter conference call. Capital expenditures in the United States in 2009 will total between $250 million and $275 million, less than one-third of the 2008 sum.

Expenditures in 2010 will be less than $50 million, said David Simon, chairman and chief executive officer. “We currently do not plan to begin construction on any major projects in 2009,” Simon said.

Simon reiterated a previous statement that “the new development business is dead for a decade. Maybe I’m overdramatizing, but there’s going to be little new development for some time to come.”

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