Simon Property Group, known for owning and operating Lenox Square mall and Phipps Plaza, announced a partnership Tuesday with a powerhouse Atlanta real estate company.
Simon, based in Indianapolis, said it will acquire 50% of Jamestown, the Atlanta-based developer behind Ponce City Market, according to a news release. The deal is expected to close before the end of the year, and Jamestown will continue to operate independently.
Simon and Jamestown declined to comment on the partnership and its effects for the companies’ Atlanta projects, citing the pending deal.
“With Simon, Jamestown will gain a partner with a deep platform of resources and operational tools that will enhance the firm’s ability to scale and grow,” the release said. “With Jamestown, Simon will gain an opportunity to capitalize on the growing asset and investment management businesses with an experienced fund manager and mixed-use operator and developer, utilizing the Jamestown platform to accelerate Simon’s future densification projects.”
Jamestown counts many German investors among its existing financial backers.
Details on the sale were not released, but the 50% interest will come from founding partners Christoph and Ute Kahl, who will continue to be Jamestown shareholders. Christoph Kahl will transition from day-to-day involvement as Jamestown’s chairman to become a member of a new Jamestown Board of Directors.
The partnership will not come with a leadership change at the top of Jamestown. CEO Matt Bronfman and President Michael Phillips will retain their roles and existing ownership.
Credit: HYOSUB SHIN / AJC
Credit: HYOSUB SHIN / AJC
As of June 30, Jamestown has more than $13 billion in assets under its management, the release said. Jamestown’s portfolio includes large mixed-use projects across the U.S., including Ghirardelli Square in San Francisco. Jamestown was also the developer behind Chelsea Market in New York, which was sold to Google for $2.4 billion in 2018. Jamestown remains the market’s manager.
Simon and Jamestown have been rivals, particularly in Buckhead where Simon owns Lenox and Phipps and Jamestown acquired the mixed-use luxury shopping destination Buckhead Village District.
“We have been impressed with Jamestown’s combination of sector expertise, dedication to driving creative placemaking, and reputation in the fund management business,” Simon’s Chairman, CEO and President David Simon said in the release. “... Jamestown is well-positioned for future growth, and we are excited about the continued expansion of Simon’s investment platform.”
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