A $1 billion shopping center deal between Simon Property Group and Equitable Real Estate Investment Management Inc. was killed because the California Public Employees' Retirement System decided to hold on to the properties, sources familiar with the deal say.
In August, Atlanta-based Equitable Real Estate and Simon, a shopping center real estate investment trust in Indianapolis, announced a preliminary deal to sell 19 shopping centers and Equitable's retail real estate property management company to Simon.
All but one of the properties are owned by pension fund clients of Equitable Real Estate. The other is owned by Equitable Cos., the parent of the real estate adviser.
According to sources, executives of the California fund decided against selling two malls it owns through Equitable in a partnership with the State of Michigan Retirement Systems. The retirement systems are limited partners, and Equitable Real Estate was the general partner. The two malls are Plaza Carolina in San Juan, Puerto Rico, and Bangor Mall in Bangor, Maine.
Sheryl Pressler, chief investment officer of the California fund, could not be reached for comment.
