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SPG Expands and Renovates Busan Premium Outlets in South Korea

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Simon Property (SPG - Free Report) recently concluded the expansion and renovation of Busan Premium Outlets in South Korea. With this move, Busan Premium Outlets currently encompass nearly 555,000 square feet of retail space, featuring more than 270 luxury and premium retail brands.

The center boasts extensive gathering and green spaces, highlighted by an "Adventure Forest" play area inspired by overseas resorts. It also offers 28 diverse food and beverage options. The expansion introduces a new 53,000-square-foot area dedicated to twenty-five premium golf brands. Moreover, revitalized amenities include expanded parking facilities, new electric vehicle charging stations, and a furnished lounge for VIP shoppers and an exclusive parking area.

Per Mark Silvestri, president of Development at Simon, "Across our global portfolio, Simon continues to strategically reinvest in our centers to deliver the world-class shopping, dining and amenities desired by today's discerning consumer. With 100 new retailers, elevated spaces and new amenities at Busan Premium Outlets, we have significantly enhanced our shoppers' experience from the moment they arrive."

SPG’s Development & Redevelopment Efforts

The relaunch of Busan Premium Outlets marks recent achievements in Simon's pioneering development and redevelopment initiatives. This follows the recent inauguration of Tulsa Premium Outlets in Tulsa, OK, and the forthcoming opening of the new Jakarta Premium Outlets in Indonesia in 2025.

In addition, there are notable strategic redevelopment programs currently taking place at various properties, including The Galleria in Houston, Southdale Center in Edina, MN, Fashion Valley in San Diego and The Fashion Mall at Keystone in Indianapolis.

Wrapping Up

Simon Property has been restructuring its portfolio, aiming at premium acquisitions and transformative redevelopments. In fact, over the past years, the company has been investing billions to transform its properties, focusing on creating value and driving footfall.

The latest move is also in line with such efforts and is likely to drive healthy demand for its properties, aiding leasing activity, occupancy levels and rent growth.

Its focus on supporting omnichannel retailing and developing mixed-use assets is encouraging. Simon Property also capitalized on buying recognized retail brands in bankruptcy. With the brands generating a decent amount from digital sales, investments in them seem strategic for Simon Property.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 12.4% compared with the industry’s growth of 16.1%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Stocks to Consider

Some better-ranked stocks from the retail REIT sector are Tanger Inc. (SKT - Free Report) and Brixmor Property Group (BRX - Free Report) , each currently carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for SKT’s 2024 FFO per share stands at $2.09, indicating an increase of 6.6% from the year-ago reported figure.

The Zacks Consensus Estimate for BRX’s 2024 FFO per share is pinned at $2.13, suggesting year-over-year growth of 4.4%.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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