The debate over whether Simon Property Group should honor its $3.6 billion deal to buy Taubman Centers might be among real estate’s Thanksgiving dinner table discussions this year.
That’s because the lawsuit pitting the mall giants against each other could be ready for trial by mid-November, according to the Michigan judge overseeing the case.
Simon agreed to buy an 80 percent stake in Taubman in February, just before the coronavirus caused malls across the country to shut down. Earlier this month, however, Simon sent notice it was cancelling the deal. The country’s largest mall owner argued Taubman breached the terms of their contract because the company failed to take steps to protect itself from the economic fallout of the shutdown, and thus had been hit harder than its peers.
Simon filed a lawsuit in Michigan — where Taubman is headquartered — asking the court to find Taubman in breach of contract. Taubman vowed to fight back in court and compel Simon to complete the deal.
Some analysts have speculated that the whole ordeal is an effort by Simon to renegotiate the terms of the deal to get a better price.
Contact Rich Bockmann at [email protected] or 908-415-5229.