Simon Property Group reported it sold its remaining 10 percent stake in brand management firm Authentic Brands Group (Authentic) for $1.2 billion.
Over the past two quarters, the largest U.S. mall owner raised $1.45 billion from selling what was once a 12 percent stake in Authentic. In February, the REIT indicated it had reduced its stake in Authentic from just under 12 percent to under 10 percent for about $250 million in cash.
“We generated substantial value from the ABG investment and a 7-times multiple on our net invested capital during our short ownership period,” David Simon, chairman, chief executive officer and president of Simon Property Group, said on a quarterly analyst call on May 6.
The sale of the stake in Authentic Brands Group comes after Simon Group, last October, reduced its stake in Sparc Group, a joint venture with Authentic, from 50 percent to 33 percent. Sparc licenses the brands Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, Nautica, and Reebok from Authentic.
Authentic brand’s portfolio includes Marilyn Monroe, Elvis Presley, Muhammad Ali, Shaquille O’Neal, David Beckham, Dr. J, Greg Norman, Neil Lane, Thalia, Sports Illustrated, Reebok, Brooks Brothers, Barneys New York, Judith Leiber, Ted Baker, Hunter, Vince, Hervé Léger, Hickey Freeman, Frye, Nautica, Juicy Couture, Vince Camuto, Lucky Brand, Aéropostale, Forever 21, Nine West, Rockport, Eddie Bauer, Boardriders, Quiksilver, Billabong, Roxy, DC Shoes, RVCA, Element, VonZipper, Honolua, Spyder, Volcom, Shark, Tretorn, Prince, Airwalk, Izod, Jones New York, Van Heusen, Hart Schaffner Marx, Arrow and Thomasville.
Image courtesy Authentic/David Beckham
