Mall owner to increase stake in two Mills shopping centers

Mall owner Simon Property Group said Thursday it would increase its ownership in Arundel Mills Mall and Arundel Mills Marketplace in Hanover as part of a $1.6 billion deal to acquire its joint venture partner's stake in 26 Mills malls and shopping centers nationwide.

Simon has signed an agreement with Farallon Capital Management LLC to acquire Farallon's stake in properties owned by The Mills Limited Partnership. The purchase price includes the repayment of some of the Mills' debt. Simon will continue to manage all centers.

After the transaction closes, Simon will own nearly 60 percent of each Hanover center.

Simon said the acquisition will allow the company to expand its investment in well-located centers that it already manages and that generate significant sales and cash flow.