Ponce-City-Market_Atlanta

Simon Agrees to Acquire 50 Percent Stake in Jamestown

by Hayden Spiess

Indianapolis and Atlanta — Simon has entered into an agreement whereby the REIT will purchase a 50 percent interest in Atlanta-based Jamestown, an owner of some of the most successful mixed-use developments in the country, such as Ponce City Market in Atlanta and Ghirardelli Square in San Francisco. Jamestown had $13 billion in assets under management as of June 30, 2022, with properties spanning the United States, Latin America and Europe. Terms of the purchase agreement were not disclosed.

With this partnership, Jamestown will gain a partner with a broad platform of resources and operational tools that will enhance its ability to scale and grow.

“The partnership with Simon will help position us for our next chapter as we scale our differentiated products in an increasingly global world,” says Michael Phillips, president of Jamestown.

With Jamestown, Simon now has an opportunity to capitalize on the growing asset and investment management businesses with an experienced fund manager and mixed-use operator and developer. Simon will also be able to access the Jamestown platform to accelerate its future densification projects.

“We have been impressed with Jamestown’s combination of sector expertise, dedication to driving creative placemaking, and reputation in the fund management business,” says David Simon, chairman, CEO and president of Simon. “Their strong leadership team and track record align with our focus on investing in best-in-class partners. Jamestown is well-positioned for future growth, and we are excited about the continued expansion of Simon’s investment platform.”

Upon closing, which is expected before the end of the year, Simon will acquire the stake in Jamestown from founding partners Christoph and Ute Kahl, who will continue to be Jamestown shareholders. Jamestown will operate independently and continue to be led by CEO Matt Bronfman and Phillips, who will retain their existing ownership stakes. Christoph Kahl will transition from day-to-day involvement as the company’s chairman to a member of the firm’s board of directors.

Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Jamestown, and King & Spalding LLP and CMS Germany are serving as the firm’s legal counsel. Wells Fargo Securities LLC is serving as exclusive financial advisor to Simon, and Latham & Watkins LLP is serving as its legal counsel.

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