Analyst: Timing Wrong for Simon Bid on $9B CSC

LONDON-Simon Property Group, based in Indianapolis, has hinted that it may bid to buy the locally-based Capital Shopping Group, valued at about $9 billion. However, many retail experts and analysts say that while the UK mall bid may represent the US-based retail giant’s best bet to grow in the next decade, the REIT doesn’t have the ability to raise the needed funds before the cost would rocket to more than $11 billion.

Last week, CSC, formerly known as Liberty International, announced that it would buy the 1.9-million-square-foot Trafford Centre near Manchester for about $2.5 billion, including the assumption of $1.2 billion of debt. Owner the Peel Group would sell the property to CSC, with the owner providing some of the funds in order to buy enough shares to acquire a roughly 19.9% stake in the company, and join CSC’s board.