Friday, May 28, 2004

Simon Group to build $43M headquarters in Indianapolis

The Associated Press

INDIANAPOLIS - Simon Property Group Inc. said Thursday a 12- to 14-story, $43 million building will be constructed near the Indiana State Capitol for the company's new headquarters.

Simon, North America's largest shopping mall owner, had considered other options for its headquarters, including renegotiating the lease at its current downtown offices or building new headquarters in suburban Indianapolis.

The company has said it needs more space for the 800 employees at its headquarters. Simon's current headquarters are a block away from the site Simon has chosen for its new offices.

The new site is in a small park called Capitol Commons - a portion of which will be replaced by Simon's new building - between the Statehouse and the RCA Dome.

Duke Realty Corp. will build the 300,000-square-foot headquarters, with construction to begin late this year and be completed in August 2006.

Simon has extended its lease by one year for its current offices and will remain there until the new building is finished.

Indianapolis leaders began a campaign to try to keep Simon in downtown, and Mayor Bart Peterson called the company's decision "a major victory."

The Marion County Capital Improvement Board, which owns the site for the new building, will lease the land to Simon.

The city will provide assistance including bonds to be sold to help provide financing.

Simon is a real estate investment trust that owns, develops and manages regional malls and community shopping centers.

The company owns or has an interest in 248 properties in 37 states as well as Canada and Puerto Rico. Simon also has interests in 48 properties in Europe.

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