Call it a “joint” venture: Simon Property Group partners with cannabis oil company

Green Growth Brands to open 108 shops in Simon malls this year

National /
Feb.February 11, 2019 06:00 PM

David Simon (left), Peter Horvath (right) and the Roosevelt Field Mall in Garden City (Credit: iStock, Google Maps, and Green Growth)

America’s biggest mall owner is seeing green.

Soon after posting a record fourth quarter, Simon Property Group announced on Monday that it would be partnering with cannabis firm Green Growth Brands to open 108 shops in its malls this year. The shops will sell products infused with the cannabis extract cannabidiol, also known as CBD, according to CBNBC.

“The GGB shopping experience is exactly the type of innovation our customers want and expect from us,” Simon Malls president John Rulli said.

The first GGB shop will open in March at Castleton Square Mall in Indianapolis, the companies said, with others opening later this year. Simon’s headquarters is also located in Indianapolis.

Other shopping centers that will host the stores include the Roosevelt Field Mall on Long Island and The Galleria in Houston

CBD, which was mostly legalized in December when President Trump signed the 2018 Farm Bill, has been touted as a wonder-drug that delivers the calming effects of marijuana without the high. Restaurants in New York City have been selling CBD-infused products for months, though the New York Department of Health began cracking down on the practice last week. The FDA still prohibits CBD from being added to foods and drinks.

Thanks to the partnership, GGB will also be opening more shops under its “Seventh Sense” brand, which provides CBD-infused body care products.

Simon Property Group owns more than 200 retail properties nationwide, with about a dozen in the New York metropolitan area. The partnership with GGB will help the REIT fill storefronts recently vacated by major brands such as Gymboree and Sears.

Columbus, Ohio-based GGB has been looking to expand its business in other ways as well, recently pursuing an unsolicited takeover of Canadian cannabis company Aphria, according to Marijuana Business Daily. Though Aphria’s board rejected a hostile bid last week, GGB says it intends to continue its efforts to acquire the company.

Simon posted a 25-percent jump in net income in the fourth quarter to $712.8 million. Competitor Macerich, meanwhile, saw net income in the fourth quarter plunge 64 percent from a year earlier to $11.7 million. [CNBC] — Kevin Sun

 

Related Articles

arrow_forward_ios
277 Fifth Avenue and Shokai Group's Shawn Xianyang Zhang (277 Fifth Avenue/Rafael Viñoly, Shokai Group)
Shokai Group picks up unsold NoMad condos for $81M
Shokai Group picks up unsold NoMad condos for $81M
Traffic was up 47.5 percent from last year, when coronavirus restrictions and concerns were more rampant. (iStock, Getty)
Black Friday retail traffic stuck below pre-pandemic levels
Black Friday retail traffic stuck below pre-pandemic levels
KPF's A. Eugene Kohn and 11 West 42nd Street (Google Maps, KPF)
KPF expands at Tishman Speyer building after sweetener
KPF expands at Tishman Speyer building after sweetener
Skylight Real Estate Partners founding partner Bennat Berger and 340 Old River Road in Edgewater (Google Maps, LinkedIn)
New firm pays $50M for Edgewater multifamily
New firm pays $50M for Edgewater multifamily
Tishman Speyer CEO Rob Speyer, Turner Construction CEO Peter Davoren and The Spiral at 66 Hudson Boulevard (Getty, Turner Construction, Tishman Speyer)
Build it and we will come: Turner Construction moves HQ to Tishman Speyer’s Spiral
Build it and we will come: Turner Construction moves HQ to Tishman Speyer’s Spiral
Donald Trump (Getty)
Pandemic dashed one-quarter of Trump’s NYC retail tenants
Pandemic dashed one-quarter of Trump’s NYC retail tenants
NYC hotels hoping for holiday business swell likely to be disappointed
NYC hotels hoping for holiday business swell likely to be disappointed
NYC hotels hoping for holiday business swell likely to be disappointed
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
Princeton proud: Eric Schmidt reportedly bidding to save club
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...