Simon takes full ownership of Gurnee Mills

Three years after buying the owner of Huntley Prime Outlets mall, Simon Property Group on Thursday announced two deals that will bring the company full ownership of Gurnee Mills outlet center in Gurnee.

Gurnee Mills is among 26 shopping malls that Simon is obtaining as it buys joint venture partner Farallon Capital Management's interest in the malls for $1.5 billion.

Simon Property Group had shared ownership of The Mills Limited Partnership, which oversaw the malls, since 2007.

The deal also includes repayment of the senior loan facility for The Mills Limited Partnership, along with repayment of a mezzanine loan and the retirement of preferred stock.

"The Mills transaction is a compelling opportunity for Simon Property to expand our investment in a portfolio of assets we know well and already manage, which are well-located in key metropolitan markets, have considerable consumer brand equity and large trade areas, and generate significant cash flow and total sales volumes," said David Simon, chairman and chief executive officer of Simon Property Group, in a statement.

Gurnee Mills is the only Illinois property among the 26 malls. Southridge Mall in Greendale, Wis., near Milwaukee also was among the properties obtained.

“We are extremely gratified by this outcome," said Rocky Fried, managing member of Farallon, in the statement. "When we entered into the transaction in 2007, we had a shared vision for The Mills properties and brand, and Simon Property Group did an exceptional job of accomplishing those goals, despite a historic downturn in the property markets. We know that under Simon’s continued stewardship, The Mills will continue to prosper.”

Simon Property also announced it was buying a minority stake in Paris-based real estate company Klépierre from BNP Paribas for about $2 billion.