BLOOMFIELD HILLS, Mich., Sept. 20, 2012 /PRNewswire-HISPANIC PR WIRE/ — Taubman Centers, Inc. (NYSE: TCO) and New Century Development announced today the groundbreaking on the 650,000-square-foot Mall of San Juan, the island’s first luxury retail development. Located adjacent to the San Jose Lagoon at the south end of the Teodoro Moscoso Bridge, the mall will be just five minutes from the Luis Munoz Marin International Airport.
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The $405 million, two-level upscale shopping center will feature the first Saks Fifth Avenue and Nordstrom in the Caribbean. Of the approximately 100 stores and restaurants, it is expected that 60 percent will be new to the island.
“Beyond the establishment of a shopping center of world caliber for the neighbors of these communities, The Mall of San Juan represents a new center of life, where employment opportunities and progress are created. With a private investment of $405 million, The Mall of San Juan will generate 5,000 direct jobs, 2,000 during the construction phase and another 3,000 by the time it opens its doors. Not only will this construction transform the area, it will also inject energy to the zone, providing convenience, uniting communities, and promising thousands of families a better quality of life,” said Puerto Rico Governor Luis Fortuno Burset, “not to mention the positive effect other related businesses who service these industries will experience.”
The shopping center is expected to generate sales of approximately $275 to $300 million with expected tax revenues in excess of $26 million.
“Our city welcomes The Mall of San Juan. A project of this magnitude represents an important destination for our community and our visitors. We are extremely excited about the construction and upcoming opening of this world class mall,” said San Juan Mayor Jorge Santini.
The shopping center is a joint venture with New Century Development of Puerto Rico, who will also be constructing a 225-room hotel and casino adjoined to the mall. The entire project is expected to open in late 2014. Taubman will develop, lease and manage the shopping center.
“This groundbreaking is the culmination of a great collaboration with our partners at Taubman,” said Frank J. Trogolo, Vice President New Century Development, Inc. “As a Puerto Rican company, we are proud to bring this great project to our Island. Our team has worked hard to bring to San Juan the first luxury shopping destination in the Caribbean. The economic contribution and the new jobs created will have a very positive impact on the community.”
At the conclusion of the groundbreaking ceremony, Taubman Chief Operating Officer William Taubman presented a $10,000 check to the San Juan Bay Estuary Program. “The communities where we build our shopping centers are the key to our success,” said Taubman. “We believe it’s important to reciprocate and support the community as well.”
Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 28 regional, super regional and outlet shopping centers in the U.S. and Asia. Taubman is also currently developing Taubman Prestige Outlets Chesterfield in Chesterfield, Missouri; The Mall at University Town Center in Sarasota, Florida; The Mall of San Juan in San Juan, Puerto Rico; and a shopping mall in Xi’an, China. Taubman Centers is headquartered in Bloomfield Hills, Michigan and its Taubman Asia subsidiary is headquartered in Hong Kong. For more information about Taubman, visit www.taubman.com.
For ease of use, references in this press release to “Taubman Centers,” “company,” “Taubman” or an operating platform mean Taubman Centers, Inc. and/or one or more of a number of separate, affiliated entities. Business is actually conducted by an affiliated entity rather than Taubman Centers, Inc. itself or the named operating platform.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management’s current views with respect to future events and financial performance. The forward-looking statements included in this release are made as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. Actual results may differ materially from those expected because of various risks and uncertainties, including, but not limited to the global credit environment and the continuing impacts of the recent U.S. recession, other changes in general economic and real estate conditions, changes in the interest rate environment and the availability of financing, adverse changes in the retail industry, general development risks, and integration and other acquisition risks. Other risks and uncertainties are discussed in the company’s filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.
SOURCE Taubman Centers, Inc.