Could Tanger and Simon be partnering in Texas?

By Laura Elder - The Daily News Published June 23, 2011 

Shoptalk: Reliable sources are shopping around a very interesting tidbit that Tanger Factory Outlet plans to co-develop a 100-store outlet mall in Texas City with retail rival Simon Property Group.

For those new to the area or have been orbiting in space, both companies earlier this year caused a huge stir when they announced they would develop separate factory outlet malls on the mainland.

In January, Indianapolis, Ind.-based Simon Property Group said it planned to build an outlet center on 55 acres along Interstate 45, south of Holland Road in Texas City. The proposed mall, called Galveston Premium Outlets, would house about 100 factory outlet stores, in which manufacturers sell their stock directly to the public at discounts. Typical tenants include Banana Republic, Calvin Klein and Kenneth Cole, to name a few. Such malls aren’t sustained by local shoppers alone, but thrive as tourists destinations.

Greensboro, N.C.-based Tanger just days later announced it planned a 95-store outlet mall on 35 acres west of I-45 between the Big League Dreams sports complex and the Bay Colony shopping center in League City.

To make a long story short, the land deal Tanger had hoped to work out in League City fell through, leaving observers to speculate that Simon would prevail in the race. Those observers also wagered the mainland could accommodate only one retail project of that scope.

Since making their announcement, officials with both companies have been mum, but sources say the mall developers are finalizing an agreement. Stay tuned.

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