GGP Ggp Inc. (delisted)

Tanger Factory Outlet Centers Inc. (SKT) recently announced that it has bought a popular outlet center located near Interstate 81 in Hershey, Pennsylvania for $56.0 million. The combined acquisition price consists of approximately $24.6 million in cash and the assumption of approximately $31.4 million in debt.

The newly acquired center will be rebranded as Tanger Outlets Hershey. The center spans approximately 248,000 square feet of space and comprises mostly designer outlets and branded stores. The strategic location of the center coupled with the high quality stores offer a lucrative investment opportunity and should generate attractive returns to Tanger's shareholders.

We believe the transaction will be accretive for the company as it will enhance the quality of its portfolio. This deal marks the company’s fourth acquisition in the current year, thus increasing Tanger’s portfolio by approximately 1.3 million square feet.

Headquartered in Greensboro, North Carolina, Tanger is a publicly-traded real estate investment trust (REIT). The company, through its subsidiary, Tanger Properties Limited Partnership, engages in acquiring, developing, owning, operating, and managing factory outlet shopping centers.

With the closing of this transaction, the company will operate and own a portfolio of 38 upscale outlet shopping centers in 25 states, totaling approximately 11.6 million square feet, leased to over 2,400 stores that are operated by more than 415 different branded companies.

Tanger currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, General Growth Properties Inc (GGP) also has a Zacks #3 Rank.

 
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